Which of the following statements are correct for tax Evasion ? A. All methods by which tax liability is illegally avoided is termed as tax evasion B. Tax evasion takes into account loopholes of Law C. Tax evasion is tax godging within framework of Law D. Tax evasion has legal sanction E. Tax evasion is intentional attempt to avoid payment of tax after the liability to tax has arisen Choose the correct answer from the options given below:
Exam Focus: Correct Statements on Tax Evasion
This section analyzes the provided statements to determine which accurately describe tax evasion.
Analysis of Tax Evasion Statements
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Statement A: "All methods by which tax liability is illegally avoided is termed as tax evasion."
Correct. Tax evasion is defined as the illegal non-payment or underpayment of tax. It involves deliberate concealment or misrepresentation.
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Statement B: "Tax evasion takes into account loopholes of Law."
Incorrect. Utilizing loopholes in the law is characteristic of tax *avoidance*, which is legal. Tax evasion is inherently illegal.
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Statement C: "Tax evasion is tax dodging within framework of Law."
Incorrect. This describes tax avoidance, not tax evasion. Tax evasion operates outside the legal framework.
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Statement D: "Tax evasion has legal sanction."
Incorrect. Tax evasion is illegal and results in penalties, fines, and potentially imprisonment. It does not receive legal approval or sanction.
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Statement E: "Tax evasion is intentional attempt to avoid payment of tax after the liability to tax has arisen."
Correct. This accurately captures the essence of tax evasion – a deliberate act to evade a tax obligation once it is legally due.
Conclusion on Correct Statements
Based on the analysis, statements A and E correctly define aspects of tax evasion.
Therefore, the correct option is the one that includes only statements A and E.
Important Questions from Income-tax
The ratio of income and expenditure is 9:5. Income increases by 40% and expenditure decreases by 10%. If the initial income is ₹45,000 then the final saving (in ₹) is:
As per the new tax regime of India, what is the exemption limit of income tax for financial year 2022-23?
What is the basic difference in the aggregates at market price and factor cost?
If assesssee is engaged in the business of growing and manufacturing tea in India, the non-agricultural income in that case be:
Arrange the steps to e-filing of Income Tax Return in correct sequence:
a) Register yourself
b) Verify ITR V
c) Select the requisite form
d) Fill form and upload
Choose the correct option from those below:
