Match List I with List II List-IList-II A) The person is liable to penalty and prosecution I) Tax…
Tax concepts are distinguished by legality and intent: Tax Evasion involves illegal concealment of income and attracts penalty and prosecution (A-III); Tax Avoidance reduces…
Choose your answer
Match List I with List II
| List-I | List-II |
|---|---|
| A) The person is liable to penalty and prosecution | I) Tax Management |
| B) Tax is reduced by taking advantage of loopholes of the law | II) Tax Avoidance |
| C) Main aim is compliance with legal formalities | III) Tax Evasion |
| D) It is a guide in decision making | IV) Tax planning |
Answer and explanation
Correct answer C
Tax concepts are distinguished by legality and intent: Tax Evasion involves illegal concealment of income and attracts penalty and prosecution (A-III); Tax Avoidance reduces tax liability by exploiting unintended loopholes in the law (B-II); Tax Management focuses on routine compliance with statutory legal formalities and deadlines (C-I); and Tax Planning serves as a forward-looking guide in managerial decision-making (D-IV).
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UGC NET Commerce