Jatinmundhra tax avoidance and tax evasion hv similar connotation. But tax evasion is a very major concern for all tax officials but, tax avoidance is not a major concern .
Tax avoidance means taking legal steps to lower your taxes, whereas tax evasion means lying, concealing income, or utilizing similarly illegal tactics to avoid paying taxes.
Common examples of tax evasion include: ... Claiming illegitimate business expenses or dependents on your tax return.
Tax planning means are adjustments are done as precribed by law e.g claiming deductions under section 80C/D and so on. Tax avoidance means you have done adjustments by finding the loopholes in the law. e.g Vodafone case where shares of holding of indian company (hutch company) has been transfer to other company outside india. Tax evasion means wrogly claiming the deductions or adjustments which are against the law. e.g claming more expenses than actually done. its is against the law and consequences are serious.
Tax planning means are adjustments are done as precribed by law e.g claiming deductions under section 80C/D and so on. Tax avoidance means you have done adjustments by finding the loopholes in the law. e.g Vodafone case where shares of holding of indian company (hutch company) has been transfer to other company outside india. Tax evasion means wrogly claiming the deductions or adjustments which are against the law. e.g claming more expenses than actually done. its is against the law and consequences are serious.
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