Distinguish between 'tax planning' and 'tax evasion'.

Sr. No. Tax Planning Tax Evasion 1. Tax planning is an act within the four corner of the tax laws. It is a mean to avail the benefits legally permissible. Tax evasion is an attempt to avoid tax by misrepresentation of facts and falsification of accounts 2. Tax planning is a permissible legal right which enables the tax payer to maximize his return net of taxes. Tax evasion is a legal offence which may lead to penalty and prosecution. 3. Tax planning enables the assessee to have more cash flow in order to expand business. Tax evasion distorts the economy and results in black money generation. 4. Tax planning is a professional exercise. Tax evasion encourages bribery and weakens the economic and political situation of the country. 5. Tax planning has judicial approval. Tax evasion is denounced by courts as anti social.