300 interview-style questions and answers based on “Tax Planning, Tax Avoidance and Tax Evasion”
Here are 300 interview-style questions and answers based on the ICAI chapter “Tax Planning, Tax Avoidance and Tax Evasion” : 1. What is tax planning? Tax planning is arranging one’s financial affairs to fully utilize exemptions, deductions, rebates and other benefits under the Income-tax Act so as to minimize tax liability without violating legal provisions. 2. Why is up-to-date knowledge important for tax planning? Because tax laws evolve via statutes, CBDT circulars, and judicial decisions; staying current ensures schemes remain valid and effective. 3. Give two illustrations of tax-planning measures for an individual. (a) Varying residential status based on days of stay; (b) Choosing between default regime under section 115BAC or normal provisions. 4. Define tax avoidance. Tax avoidance is using legal methods that, while technically within the ...