![]() Tax evasion and tax avoidance are sometimes misunderstood considerably. ![]() In contrast to Tax Avoidance, Tax Evasion is an illegal activity where the intent is primarily to hide income and avoid paying the true tax liability (2) ![]() Utilizing such avenues allowed by the law to reduce the tax liability is termed as Tax Avoidance (1) For a Business, it could be allowing for the depreciation of the plants and machinery or amortizing the investments on new Software. income tax saving on Home Loan, House Rent Allowance etc. The Income Tax Act in India allows for multiple opportunities to reduce the tax liabilities in accordance with the law. Whether you are an individual (be it Sole Proprietor or a Salaried profession) or an entity (be it Company, Partnership or an LLP), taxes are one of the major components which decide the bottom line of your financial performance The loss however is to the Government and in turn the people of the state as the money so collected through the taxes would have been utilized for development activities to make our life better
0 Comments
Leave a Reply. |