Tax planning is a process where the tax-payer utilizes the concessions available to him under various tax laws and pays the minimum possible tax. This is done with complete adherence to the tax laws. In fact, the government encourages you to plan your taxes by investing in tax saving instruments like life insurance.
For many tax payers, planning is not listed in their agenda until March. This is the month wherein they run to invest their money in a plan with the sole purpose of saving tax for that financial year. If they get a plan that avails them tax deduction, they don't think about any other benefits. Also, most of the times, the tax saving instrument chosen is a recommendation by a colleague or something they've seen in an advertisement. This practice mostly leads people to make wrong investment choices.