Income is taxed, and the tax regime a person is under affects their ability to save money, the return on their investments, and, consequently, the corpus they can accumulate for their future objectives. When selecting financial products and calculating holding periods, the post-tax return must be taken into account. Different forms of investment income, including dividends, rent, and interest, have different taxation rates. The process of using existing tax rules and provisions to arrange one’s finances in order to minimize tax liabilities in the most effective manner is known as tax planning.