Specify whether the following acts can be considered as (i) Tax planning; or (ii) Tax management; or (iii) Tax evasion. An individual tax payer making tax saver fixed deposit of ₹1,00,000 in a nationalized bank.
CS Professional · Advanced Tax Laws and Practice · PYQS · December 2018
Specify whether the following acts can be considered as (i) Tax planning; or (ii) Tax management; or (iii) Tax evasion. An individual tax payer making tax saver fixed deposit of ₹1,00,000 in a nationalized bank.
Answer & Explanation:
Investment in tax saver fixed deposits is allowed as deduction u/s 80C of the Income Tax Act, 1961 and is an act of Tax Planning. Therefore, depositing ₹1,00,000 in tax saver fixed deposit by an Individual tax payer is an act of Tax Planning.
Topics: Income Tax Act, 1961
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