Income tax plays a pivotal role in corporate financial planning, influencing a company's financial strategies and decision-making processes. This study outlines the integral aspects of how income tax affects corporate financial planning and the implications for overall business performance. Corporate financial planning involves various strategies to manage and optimize tax liabilities, which can significantly impact cash flow, investment decisions, and financing options. Effective tax planning enables companies to minimize their tax burden through careful management of deductions, credits, and timing of income and expenses. This not only helps in reducing taxable income but also ensures better cash flow management, allowing companies to allocate resources more efficiently. Tax considerations are crucial when making investment decisions. Companies often evaluate the tax implications of potential investments, such as the benefits of tax credits or accelerated depreciation. This helps in maximizing returns and aligning investments with tax advantages. Similarly, financing decisions are influenced by tax efficiency, with debt financing often preferred due to the tax-deductibility of interest payments. Profit allocation across different jurisdictions, particularly for multinational corporations, is another area where tax considerations play a significant role. Transfer pricing and tax incentives in various regions impact where and how profits are reported and taxed. Compliance and risk management are essential components of tax planning, as adhering to tax regulations and preparing for audits mitigate potential financial and legal risks. Strategic planning integrates tax considerations into broader business objectives, guiding mergers, acquisitions, and long-term growth strategies. This study concludes that income tax is a critical factor in corporate financial planning, affecting financial outcomes and strategic decisions across various aspects of a business. Effective tax management enhances financial stability and supports sustainable growth.