Home › CA Final › taxation › Assessment of Various Entities › Tax planning vs evasion — which is impermissible?
Tax planning vs evasion — which is impermissible?
ATax evasion (concealment of facts/false claims)
BTax planning
CTax avoidance using SAAR (per relevant Section)
DCBDT circular reliance
Answer & Solution
Correct answer: A. Tax evasion (concealment of facts/false claims)
1. Tax planning: lawful arrangement to minimize tax using exemptions/deductions.
2. Tax avoidance uses loopholes; target of GAAR/SAAR.
3. Tax evasion: concealment/false claims/fraud; illegal — penalty (270A/271AAB) and prosecution.
_Source: ICAI BoS CA Final Paper 7, Ch 9 "Assessment of Various Entities"_
Related questions
'Specified domestic transaction' threshold under Section 92BA:LLP is taxed like:Co-operative society normal rates start at:MAT for IFSC units (income solely in convertible FX):Tax on REIT/InvIT interest from SPV:Section 115BAC default regime applies to:AOP/BOI taxed at MMR when:HUF income is taxable at: