Income tax management involves the strategic planning and execution of tax-related activities to optimize tax liabilities and ensure compliance with tax laws and regulations. It encompasses various processes, including tax planning, preparation, filing, and compliance monitoring.

Tax planning is a crucial component of income tax management, involving the analysis of financial activities and transactions to minimize tax liabilities legally. This may include utilizing tax deductions, credits, exemptions, and other tax-saving strategies to reduce taxable income and maximize tax savings.

Income tax preparation involves the accurate and timely completion of tax returns, including gathering relevant financial information, calculating tax liabilities, and preparing tax forms for submission to tax authorities. It requires thorough knowledge of tax laws and regulations to ensure compliance and avoid penalties or audits.

Filing income tax returns involves submitting completed tax forms and supporting documentation to the appropriate tax authorities, such as the Internal Revenue Service (IRS) in the United States or the Revenue Department in other countries. Filing deadlines vary depending on jurisdiction and taxpayer status.