Tax planning is the process of reducing your tax liability through exemptions, deductions, and benefits. The objective of tax planning in the Pakistan is to minimize a taxpayer's annual tax liability by maximizing the use of tax deductions, exemptions, and benefits. 

Tax planning is primarily intended to reduce your tax liability. Governments ensure citizens pay the maximum amount of tax. While adhering to legal and ethical boundaries, effective tax planning helps individuals and businesses save more money. 

• Tax-Deferred Accounts: The FBR allows deductions for contributions to approved pension plans, which can help reduce taxable income. 

• Tax Credits and Deductions: Utilize tax credits and deductions available under Pakistani tax laws. The FBR provides specific guidelines on the eligibility and limits for these deductions. 

• Capital Gains Management: In Pakistan, long-term capital gains on listed securities are taxed at a lower rate compared to short-term gains. 

• Income Splitting: In Pakistan, you can use this method through gifting assets or income-sharing arrangements. Ensure compliance with FBR regulations on gift tax and income distribution to avoid potential legal issues.

When a company is successfully complying with requisite regulations, it saves a lot of time, effort, and resources that can be used in more core objectives.  

Individuals, corporations, and businesses use tax accounting for various purposes. An individual's tax return focuses on income, deductions, donations, and investment gains or losses. Accounting affects taxation by ensuring accurate reporting, identifying deductions, and maintaining compliance. It helps calculate taxable income correctly, manage cash flow for tax payments, and prepare for audits, leading to optimized tax outcomes. 

Tax planning automatically boosts employee morale. Compliance with regulations will ensure that the company performs at maximum efficiency and with good intent. This will boost goodwill. When a company has a good reputation, the employees of the company automatically have higher morale and tend to stick around longer. 

Tax accounting is a structure of accounting methods that focus on taxation rather than the appearance of public financial statements. When companies and individuals prepare their tax returns, they must follow the specific rules outlined by the Federal Board of Revenue. 

Tax accountants ensure their clients are meeting their legal obligations, whether they are businesses or individuals. Tax planning and regulatory compliance are among the duties involved, and corporate governance procedures are adhered to.