A Study on the Tax Planning Practices of Employees in Manufacturing sector with special reference to Bangalore

The analysis of a financial situation or a planning made from a tax perspective constitutes tax planning. Tax efficiency is the foremost purpose of tax planning. Various Exemptions, deductions and benefits can be adopted by the employees to minimize their tax liability over a financial year. The legal way of reducing the tax liabilities is tax planning. This study focuses on determining the level of awareness of employees in various tax aspects, to look into the measures adopted by the employees, to know the attitude of employees towards various tax facets and to identify the issues and challenges faced by them. The researcher collected data from 80 employees in manufacturing sector using questionnaires and the analysis was obtained using various tools such as percentage analysis, descriptive statistics, rank correlation and factor analysis. This study reviled that most of the employees are unaware about the tax planning measures and deductions available in Indian tax system.