MOST IMPORTANT MCQ
INCOME TAX & CORPORA
TAX PLANNING (UNIT 10
UGC NET COMMERCE
LIVE SESSION BY SUMANT SIR
TODAY – 11:00 AM
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, Question 1
Q. Consider the following statements and identify the correct
code:
Statement I: Tax planning can be defined as an arrangement of
one’s financial and economic affairs by taking complete legitimate
benefit of all deductions, exemptions, allowances and rebates.
Statement II: All methods by which tax liability is illegally avoided
are termed as tax avoidance.
a. Statement I only is true
b. Statement II only is true
c. Both the statements are true
d. None of the statements is true
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, Explanation
Tax planning can be defined as an arrangement of one’s financial and economic affairs by
complete legitimate benefit of all deductions, exemptions, allowances and rebates so that tax
reduces to minimum.
Tax avoidance is reducing or negating tax liability in legally permissible ways and has legal sa
This can be done within the legal framework even by taking help of loopholes in the law. Tax avoid
intentional tax planning before the actual tax liability arises.
All methods by which tax liability is illegally avoided are termed as tax evasion. Tax evasion may
an untrue statement knowingly, submitting misleading documents, suppression of facts, not main
proper accounts of income earned (if required under law), omission of material facts on assessme
www.everstudy.co.in
INCOME TAX & CORPORA
TAX PLANNING (UNIT 10
UGC NET COMMERCE
LIVE SESSION BY SUMANT SIR
TODAY – 11:00 AM
www.everstudy.co.in
,Other Courses for Net Commerce 2019
UNIT SNAPSHOT FREE
UNITWISE PAST PAPERS (EXPLAINED) Rs. 549
COMPLETE TEST SERIES Rs. 1299
VIDEO COURSE ON NEW TOPICS Rs. 2499
LIMITED PERIOD OFFER !
www.everstudy.co.in
, Question 1
Q. Consider the following statements and identify the correct
code:
Statement I: Tax planning can be defined as an arrangement of
one’s financial and economic affairs by taking complete legitimate
benefit of all deductions, exemptions, allowances and rebates.
Statement II: All methods by which tax liability is illegally avoided
are termed as tax avoidance.
a. Statement I only is true
b. Statement II only is true
c. Both the statements are true
d. None of the statements is true
www.everstudy.co.in
, Explanation
Tax planning can be defined as an arrangement of one’s financial and economic affairs by
complete legitimate benefit of all deductions, exemptions, allowances and rebates so that tax
reduces to minimum.
Tax avoidance is reducing or negating tax liability in legally permissible ways and has legal sa
This can be done within the legal framework even by taking help of loopholes in the law. Tax avoid
intentional tax planning before the actual tax liability arises.
All methods by which tax liability is illegally avoided are termed as tax evasion. Tax evasion may
an untrue statement knowingly, submitting misleading documents, suppression of facts, not main
proper accounts of income earned (if required under law), omission of material facts on assessme
www.everstudy.co.in
