Income is subject to tax and the amount an individual can save, the return they earn on their investment and therefore the corpus they are able to build for their future goals, are all impacted by the tax regime they fall under. The post-tax return of financial products will have to be considered while choosing products and estimating holding periods. The taxability of various types of investment income such as dividends, rents and interest differ. Tax Planning is the process of utilizing available tax provisions and laws to organize one’s financial situation to reduce the tax liability in the most efficient way.