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Dr Amit Kumar Sinha
[email protected]
[email protected]
Corporate Tax Planning
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Tax Planning Its legitimateTax Planning Its legitimate
. there is nothing sinister in soarranging ones affairs as to
keeptaxes as low as possible.
nobody owes any public duty to paymore than the law demands:
taxes
are enforced extractions, notvoluntary contributions.
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Tax PlanningTax Planning
Tax Planning can be defined as an
arrangement or management of onesfinancial affairs by applying
complete
legal provisions and benefits of alldeductions, exemptions,
allowancesand rebates in such a way to reduce
the tax liability to minimum
Corporate Tax PlanningCorporate Tax Planning
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Features Of Tax PlanningFeatures Of Tax Planning
It comprises provisions within the provisionsgiven in the Income
Tax Act.
All Legal obligations and the transactions are
met.
Transactions shouldnt take form of colourabledevices
There is no intentions to deceit the legal spiritbehind the
provisions in law.
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Tax AvoidanceTax Avoidance
Any Planning of tax which
aims at reducing or negatingtax liability in legally
recognized permissible ways,
can be termed as an instanceof tax avoidance.
Corporate Tax PlanningCorporate Tax Planning
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Features of Tax AvoidanceFeatures of Tax Avoidance
Legal arrangement of affairs of affairs in sucha way so as to
minimize tax liability.
Avoidance of tax is a legal practice within the
rules and provisions
There is no evidence ofmala fide motiveinvolved in tax
avoidance
Corporate Tax PlanningCorporate Tax Planning
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Tax EvasionTax Evasion
All methods by which taxliability is illegally avoided are
termed as tax evasion.
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Features of tax evasionFeatures of tax evasion
Intent to defraud
Illegal or unlawful
Unrelated to a professional practice its tax omission
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Tax Avoidance Vs. Tax EvasionTax Avoidance Vs. Tax Evasion
Tax avoidance Tax EvasionAny Planning of tax which aims
atreducing or negating tax liabilityin legally recognized
permissibleways, can be termed of taxavoidance
All methods by which tax liabilityis illegally avoided are
termed astax evasion
Use of loopholes to mitigate taxliability
Use of unfair means or methodsto avoid tax liability.
Its legally sanctioned Unlawful even an assessee guiltyof tax
evasion may be punished
Its Hedging of tax liability with theframework of law
Its tax omission
Its intentionally performed beforetax liability arises
Its intentional attempt to avoidpayment of tax after tax
liabilityarises
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Tax Planning Vs. Tax ManagementTax Planning Vs. Tax
Management
Tax Planning Tax ManagementThe Objective of tax planning is
toreduce the tax liability to minimum
Objective of the tax management isto comply with the provisions
oflaw
Its futuristic approach Its concerned with past , presentand
future also
Tax planning is very wide its covertax management also
Tax management has very limitedscope its deals with
specificactivities
Benefits from tax planning are
substantial particularly in long run
As a result of effective tax
management , penalty, penalinterest, prosecution etc can
beavoided.
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Thank You
