State with reason, whether the following acts can be considered as an act of Tax Planning, Tax Management, Tax Avoidance or Tax Evasion : (a) Starting business in an industrially backward State which will entitle an asse
CS Professional · Advanced Tax Laws and Practice · PYQS · December 2019
State with reason, whether the following acts can be considered as an act of Tax Planning, Tax Management, Tax Avoidance or Tax Evasion : (a) Starting business in an industrially backward State which will entitle an assessee to claim a deduction under section 80IB.
Answer & Explanation:
Starting business in an industrially backward State which will entitle an assessee to claim a deduction is an act of Tax Planning because incidence of tax is minimised using the exemptions/deduction provided in the Income Tax Act, 1961.
Topics: Income Tax Act, 1961
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