Explain the concept of "Short Range and Long Range Tax Planning"

Short Range Tax Planning: It refers to year-to-year planning to achieve some specific or limited objective. This type of planning is generally done at the end of the income year. Example: An individual assessee may plan to subscribe to PPF/NSC within the prescribed limit to enjoy the tax benefit in a particular year having unusual growth in the income. Long Range Tax Planning: It involves charting out a plan at the beginning of the income year to be followed around the year. This type of planning may not benefit immediately as in the case of short-term tax planning, but it is likely to help in the long run. Example: Transfer of shares by an assessee to his minor son. Income from shares will be clubbed with his income, but clubbing would cease after the minor attains majority, leading to long-term tax benefits.