tax planning

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What is the need of tax planning? What are the limitations?
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1. Tax planning helps to avoid unnecessary burden of tax compliances and payment of a higher amount of tax than what is actually needed. Tax planning helps the assessee to be aware of existing provisions and plan his financial move accordingly without getting entangled with tax complication. 
2. However, with respect to limitations Tax planning does not mean avoidance of tax. It will simply make an assessee aware of various provisions and according to provisions it will allow the assessee to plan his investments and other finance-related matters. 
3. Tax planning is considered as a correct approach and various provisions are its limitations. 
Please correct me if the above explanation is not satisfying. 


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