Income Tax
In almost every country, governments require wage-earning citizens to pay a tax on their income. There are often ways to reduce what you owe. In the U.K., for instance, salary sacrifice schemes allow you to contribute some of your pay before it is taxed in exchange for other employment benefits, such as child care vouchers. You also receive tax relief on contributions to a registered pension. Keep in mind that laws and practices vary around the globe. For instance, the income tax system in India is highly complex with multiple amendments. There are numerous options for reducing the tax burden, including, for Hindu families, the creation of a HUF (Hindu Undivided Family). The HUF is a legal entity and is taxed separately from the individual members of the family. A good tax-planning advisor can offer guidance.
