Taxation and Estate Planning Training Course
With the growth of the financial planning sector in India, people have started to seriously consider the various options in personal finance that were not seemed important earlier. Estate or succession planning is one of them. Just as it’s important to create wealth, it’s equally important to secure the transfer of property and avoid legal hassles once we are gone. Estate planning, along with the need to optimize tax liability, highlights the importance of tax and estate planning.
What is tax planning?
In simple terms, tax planning is the analysis of an individual’s financial position from the point of view of tax efficiency. It helps a person to plan his/her finances in the most effective way. Tax planning helps a taxpayer to perfectly utilize the various tax deductions, exemptions, and other available benefits for minimizing the tax liability in a financial year. It’s a legal way to reduce income tax burden. But you must be cautious while planning your taxes. Remember that reducing your taxes doesn’t mean tax evasion or avoidance.
Tax planning in India
There are several options to save tax in India, subject to the provisions of the Income Tax Act (1961) and as amended from time to time. These options enable taxpayers to take advantage of a wide range of deductions and exemptions to help limit the overall tax liability. The exemptions are available from sections 80C to 80U and can be claimed by all eligible taxpayers. They can be claimed against the total tax liability. There are also many other sections under the Act that reduces tax liabilities.
When tax planning is carried out inside the framework defined by the government, it’s completely legal and considered as a smart decision. But use of shady techniques for evading tax payment is illegal. It may land you in trouble. Tax may be saved by planning, avoidance, and evasion. Among all these, only planning is the legally accepted method to reduce the tax burden. The government offers several opportunities in this regard and via allowable tax planning methods.
What is estate planning?
Estate or succession planning is one of the most important steps a person should take to ensure that his/her property wishes are honored, and that their loved ones are provided for in their absence. In India, however, estate planning is often deferred in the face of more immediate concerns. We often tend to forget that a good estate plan often resolves several legal complications when a person dies. What was the financial position of that person? What was the valuation of the property owned? Who gets what? Is there any need for a personal guardian in case of a minor beneficiary? What’s the tax need to be paid for transfer of assets?
What is estate?
Estate includes all of the following and other assets in general.
- Bank accounts
- Land and property
- Stocks, cash and other securities
- Life insurance policies
- Personal property including jewelry, artwork, cars etc.
Need for estate planning
The basic reason for estate planning is to preserve, protect and manage assets. Timely succession and estate planning are keys to a trouble-free future for your loved ones. A recent survey in the US regarding estate planning and writing the will has found that only about 44% of the respondents had any paper regarding estate or succession planning. The level is much lower in India. Most Indians don’t understand the importance of a will and bequeath assets to their family in the legal and formal method.
Need for tax planning
Tax is an important part of an individual’s annual income. There are two types of taxes in India i.e. direct taxes like the personal income tax, and indirect taxes that include service tax, and customs and excise duties etc.
It should be kept in mind that tax planning shouldn’t be considered in isolation. It should rather be part of a holistic financial plan where tax is treated as expenditure. And that expenditure should be minimized. While the Income Tax Act provides for certain deductions to reduce the personal tax burden, indirect taxes can be optimized via innovative strategies like lowering the MRP, reducing tax incidence etc. necessary items like cameras, TVs, laptops etc can be purchased for personal use if you’re travelling abroad for business purpose.
But it’s important to ensure that a person’s net income should be divided into three parts to be used as debt repayment, current expenses, and investing for the future.
Section 80C of the Income Tax Act provides a list of various financial instruments that one may claim as deduction from the taxable income, subject to a limit of ₹1 lakh. Tax saving instruments in this range includes life insurance policies, bank fixed deposits, mutual funds, equity linked savings schemes (ELSS) and others.
Under section 24 of the act, deduction is allowed on housing loan interest up to a limit of ₹15,000 for a self-occupied property. There’s no limit for the deduction if the property has been let out. Hence, buying a second house often becomes an attractive proposition for better tax efficiency.
The taxation and estate planning course description is as follows.
- Introduction: You are introduced to money concepts in this section.
- Banking and bank accounts: In this section you learn about the basics of banking, types of accounts, and what a cheque is.
This section is divided into 60 parts and you learn the important concepts of taxation and estate planning. Topics covered include details of cheques, demand drafts and ATMs, details of credit card and internet banking, introduction to financial planning, the power of compounding, inflation, the time value of money, cash flow and budgeting (in two parts), debt management, introduction to risk in insurance planning, comprehensive insurance planning (in two parts), breakup of insurance premium, writing financial goals, concept of shares, asset allocation, mutual funds and their advantages, various types of mutual fund, real estate and cash investment, understanding small savings (in two parts), the features and types of debt mutual funds, basics of taxation, salary components and income from house property, tax collection, planning for retirement and its importance in India, estate planning, the concept of will, details of estate planning tools, the concept of marriage, ways to take title of property, behavioral finance, explaining the time value of money, annuity, periodic, nominal and effective annual return, the concept of amortization, Excel functions for explaining for future and present value, annuities, perpetuity, amortization, revision of the time value of money concept followed by more revision, capital revenue expenses, the assets and liabilities side of balance sheet, ratio analysis and the valuation of assets, financial planning overview, risk analyzer (in two parts), practical issues, and practical asset allocation.
Taxation and estate planning:
This section is divided into 83 parts. The subjects covered are fundamentals of taxation, the mode of set off carry forward and setting off business losses, estimating retirement expenses and income streams, pension sector reforms and the need for it, the reforms process, the concept of estate planning, power of attorney, estate planning (in two parts), taxation saving (in two parts), life insurance, medical insurance, tuition fees, Rajiv Gandhi Equity Savings Scheme, donation to political parties, capital gains tax, agricultural land, computation of STCG and LTCG, income from house property and house property let out for a part of the year, salary income, allowances and prerequisites, the valuation of prerequisites, taxation theory, compensation on VRS, income from other sources, leave encashment, amount not deductible, profits and gains from business or profession (in two parts), proportionate depreciation (in two parts), expenses on scientific research, expenditure on a specified business (in two parts), special reserve, learning objective (in four parts), specified business and business reorganization, planning, evading, and avoiding taxes, provisions of law, long-term and short-term tax planning, retrospective legislation, scope of definition, what is a company, what does it income includes, fringe benefits, agricultural income, advance tax (in two parts), taxation of nonresidents under the Income Tax Act, tax rate, relevant income tax rules, benefits available to salaried individuals (in three parts), comprehensive child and retirement planner, recurring goals, instruction and notes, assumption, personal details, income and expense (in two parts), assets, liabilities and investment assets, insurance goals and asset allocation in this regard, resolving retirement planning problems, analysis of insurance needs, saving for the goals, and goal-wise fund allocation, reshuffling your portfolio and goals with Excel sheet problems (in two parts), followed by resolving Excel sheet problems with cell-wise formula.
Anyone can join the taxation and estate planning training course. The course is open-entry. However, it’s recommended that participants have at least some experience in taxation or have some knowledge of the core areas covered in the program, namely tax, trusts, and estate planning.
The taxation and estate planning course is meant for those working as financial planners, investment advisors, banking sector, and those dealing in estates and trusts. The course would also help candidates who want a more integrated approach regarding their client work, by helping them in developing an awareness of the taxation, investment and legal issues that usually overlap in estate planning.
FAQs: Some general questions
- I already have some experience in tax planning. Can I benefit from the course?
Yes. Many of our students have prior exposure to tax preparation. The taxation and estate planning training course will update your knowledge and brush up the skills for you to perform better in your job.
- What type of job offers can I expect after completing the course?
All our alumni are well placed in various companies and top firms. Many have opened their own firm and practicing independently. They are all highly sought-after professionals.
- I don’t want to work as a tax planner. How will the course benefit me?
Many students join our course to handle their personal or business taxation issues. They save on taxes by following relevant procedures explained in the tutorials. They claim deductions they didn’t know of.
- Who are the faculty for the course?
The faculty is all leading tax planning professionals. They will impart practical knowledge regarding property transfer, will, provisions, and providing for your family.
“I was already employed in a tax and law firm as a customer liaison officer. I wanted to better my knowledge and one of my friends recommended EduCba. I was able to get some rare insights into tax planning.”
“The taxation and estate planning is one of its kind course. It was immensely helpful for me in my tax planning. With over 27 hours of HD videos, the course was exhaustive and detailed.”
Om Prakash Jaiswal
“There’s no alternative to the EduCba course on tax planning. What more, I was able to study from the convenience of my home. A computer and a good internet connection is all that your require.
“After graduating in finance I was sitting idle, not knowing what to do, till I stumbled on the course. I have greatly benefited from the course and have got a number of job offers. I never knew the course will help me so much.”
Successfully completing the taxation and estate planning course can help you in the following ways.
- Describe a wide variety of lifetime trust structures that are commonly found in private client work
- Describe the use and effectiveness of various will trusts that are commonly encountered
- Explain purpose and operation of trusts used together with pension and life contracts
- Identify and explain the factors that affect a client’s domicile and residence and outline the impact that may have on his/her estate planning needs
- Identify and analyze the opportunities for client mitigation, via exemptions and lifetime gifts.
- Understand and elucidate technical and legal language used by advocates for discussing private client matters.
- Describe duties and responsibilities of trustees regarding investment matters
- Outline the areas for watching while dealing with the property of an incapacitated client, or someone whose assets are under a power of attorney.