Hello All,
Please explain the diff bw Tax Avoidance & Tax Planning.
2 Replies
CA abhinandan agarwal
(CA CS Bcom(H))
(174 Points)
Replied 14 September 2012
Tax avoidance-transfer his income to the name of his wife is tax avoidance.
Tax planning-finding out the loop holes of Income tax ,claiming full deduction and exemption
CHAITANYA
(C.A.; C.S.)
(90 Points)
Replied 14 September 2012
basic difference:
tax planning is legitimate benefits to assesse e.g. using deductions and allowances in legitimate way
tax avoidance is not legitimate and offence e.g. any act of ignoring or violating any section of act
further, finding loopholes in income tax may not always be tax planning, mostly it has coloured with tax avoidance
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