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
Tax audit is compulsory in the case of a person carrying on profession and whose gross receipts exceeds which one of the following?
Which are the appropriate tax planning perspectives in case of shutdown or continued decision under the Income Tax Act, of 1961?
A. Business loss and unabsorbed depreciation can be carried forward and set off against profit and gain.
B. The loss-making company and profit-making company may merge to avail of the tax benefit
C. Tax benefit of deduction u/s 33 AB and 115 VT may be withdrawn and liable to tax for the year in which the business is discontinued.
D. The condition of section 80 IB / 80 IC of the Act, a deduction is allowed for such undertaking
E. If a person has more than one business, the loss-making business may not be discontinued.
Choose the most appropriate answer from the options given below:
Belated return u / s 139(4) can be filled at any time
Which of the following is NOT a change of the new Income Tax bill introduced in the Parliament during February 2025?
What is the basic difference in the aggregates at market price and factor cost?
