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  • Difference Between Tax Planning

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    Biswaranjan Satpathy
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    The document outlines the key differences between tax planning, tax avoidance, tax evasion, and tax management. [Tax planning legally reduces taxes by taking advantage of exemptions and deductions. Tax avoidance illegally reduces taxes by bending the law. Tax evasion illegally conceals income to reduce taxes and can result in penalties. Tax management complies with tax laws to avoid penalties and follow legal tax procedures.]

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    The document outlines the key differences between tax planning, tax avoidance, tax evasion, and tax management. [Tax planning legally reduces taxes by taking advantage of exemptions and deductions. Tax avoidance illegally reduces taxes by bending the law. Tax evasion illegally conceals income to reduce taxes and can result in penalties. Tax management complies with tax laws to avoid penalties and follow legal tax procedures.]

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    © All Rights Reserved
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    Download as docx, pdf, or txt
    3K views2 pages

    Difference Between Tax Planning

    Uploaded by

    Biswaranjan Satpathy
    The document outlines the key differences between tax planning, tax avoidance, tax evasion, and tax management. [Tax planning legally reduces taxes by taking advantage of exemptions and deductions. Tax avoidance illegally reduces taxes by bending the law. Tax evasion illegally conceals income to reduce taxes and can result in penalties. Tax management complies with tax laws to avoid penalties and follow legal tax procedures.]

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    DIFFERENCE BETWEEN TAX PLANNING, TAX AVOIDANCE, TAX EVASION AND TAX MANAGEMENT

    Point of Tax Planning Tax Avoidance Tax Evasion Tax Management


    distinction
    Definition It is way to reduce It is way to reduce It is the way to It is a procedure to
    tax bill by using tax bills by bending reduce tax bill by fulfill all
    advantages downed the law without deliberately requirements of the
    by the tax through breaking it suppressing income tax act.
    various exemptions, income or over
    deductions and showing
    relief expenditure etc.

    Nature It is moral in nature It is immoral in It is illegal, hence It is duty to comply


    nature but illegal immoral in nature with the law.

    Benefit Benefit arises in Benefit arises in No benefit arises It avoids penalty,


    short run as well as short run but causes penalty interest and
    in long run and precaution prosecution.

    Object To reduce tax bill To reduce tax bill To reduce tax bill To comply with the
    featuring script and following script but without by any requirement of the
    moral of law not moral of law. means whether law
    legal or illegal

    Treatment of It takes advantage It takes advantage It violates the law It follows the law.
    law gifted by law of loopholes in the
    law

    Practice It is a practice of It is practice of tax It is a practice of It is a practice of tax


    tax saving saving tax concealment administration.

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