This document discusses tax evasion, tax avoidance, and tax planning in India. It defines each term and explains the differences between them. Tax evasion is illegal and involves failing to report income or improperly claiming deductions. Tax avoidance uses legal loopholes to reduce tax liability but still defeats the intention of tax laws. Tax planning is the recommended approach, as it involves legitimate strategies like maximizing deductions, investments, and year-end planning to minimize tax burden. The document also outlines some common penalties for tax non-compliance in India.
Tax planning is the analysis of a financial situation or plan from a tax perspective. The purpose of tax planning is to ensure tax efficiency, with the elements of the financial plan working together in the most tax- efficient manner possible. Tax planning is an important part of a financial plan, as reducing tax liability and maximizing eligibility to contribute to retirement plans are both crucial for success.
Our Tax team has summarised the important compliance related provisions of Income Tax Act 1961 and prepared the compliance hand book for easy reference.
Tax planning is the analysis of a financial situation or plan from a tax perspective. The purpose of tax planning is to ensure tax efficiency, with the elements of the financial plan working together in the most tax- efficient manner possible. Tax planning is an important part of a financial plan, as reducing tax liability and maximizing eligibility to contribute to retirement plans are both crucial for success.
Our Tax team has summarised the important compliance related provisions of Income Tax Act 1961 and prepared the compliance hand book for easy reference.
Military Families Learning Network Webinar - his 90-minute webinar will review a variety of time-tested tax and financial planning strategies including offsetting investment capital gains with capital losses, bunching itemized tax deductions, making charitable contributions, accelerating or delaying income, using up flexible savings account (FSA) balances, adjusting income tax withholding, and maximizing contributions to tax-deferred employer retirement savings plans such as 403(b) plans and the Thrift Savings Plan (TSP). This webinar is presented on behalf of the Military Families Learning Network. https://learn.extension.org/events/1675
Tax Planning Concept and tax planning with specific managerial decisionsSundar B N
In this ppt most of the tax planning concepts are covered. Tax planning, Tax evasion, tax avoidance, tax planning with inter corporate dividend and Bonus share. Tax Planning with specific managerial decisions are covered.
Subscribe to Vision Academy for Video assistance
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
This PPT has in detail the ways how one can do efficient tax planning. For more information visit https://www.financialhospital.in/tax-planning-seminar.php
Military Families Learning Network Webinar - his 90-minute webinar will review a variety of time-tested tax and financial planning strategies including offsetting investment capital gains with capital losses, bunching itemized tax deductions, making charitable contributions, accelerating or delaying income, using up flexible savings account (FSA) balances, adjusting income tax withholding, and maximizing contributions to tax-deferred employer retirement savings plans such as 403(b) plans and the Thrift Savings Plan (TSP). This webinar is presented on behalf of the Military Families Learning Network. https://learn.extension.org/events/1675
Tax Planning Concept and tax planning with specific managerial decisionsSundar B N
In this ppt most of the tax planning concepts are covered. Tax planning, Tax evasion, tax avoidance, tax planning with inter corporate dividend and Bonus share. Tax Planning with specific managerial decisions are covered.
Subscribe to Vision Academy for Video assistance
https://www.youtube.com/channel/UCjzpit_cXjdnzER_165mIiw
This PPT has in detail the ways how one can do efficient tax planning. For more information visit https://www.financialhospital.in/tax-planning-seminar.php
· Tax Planning,
· Direct Tax Structure in India,
· Restriction for Tax Avoidance and Tax Evasion,
· Residential Status and Tax Planning
· Corporate Taxation and Dividend Tax
Income Tax for New Tax Return Filers- FAQs.pptxtaxguruedu
This article provides a detailed overview of income tax, including its definition, the administrative framework, return filing period, who is liable to pay tax, how to pay tax, precautions in tax payment, advance tax calculation, income tax challans, Form 26AS, exempt income, taxable income, maintaining books of account, professions, and the period for which records should be kept. It also covers topics such as revenue receipts, capital receipts, agricultural income, and relief from double taxation.
Unit II Tax Planning and Company PromotionDayanand Huded
The chapter comprises of Meaning of Tax Planning, Tax Avoidance, Tax Evasion and Tax Management; Features and Scope for Tax Planning; Business Location and Tax Planning; Nature of Business and Tax Planning: FTZ, Units in SEZ, 100% EOU and Infrastructure Development.
Tax planning is a focal part of financial planning. It ensures savings on taxes while simultaneously conforming to the legal obligations and requirements of the Income Tax Act, 1961. The primary concept of tax planning is to save money and mitigate one's tax burden.
Tax Planning is the arrangement of financial activities in such a way that maximum tax benefits are enjoyed by making use of all beneficial provisions in the tax laws. It entitles the assessee to avail certain exemptions, deductions, rebates and reliefs, so as to minimise its tax liability.
(i) Reduction of tax liability: One of the supreme objectives of tax planning is the reduction of the tax liability of the payer and the resultant saving of the earnings for a better enjoyment of the fruits of hard labour.
(ii) Minimization of litigation and the tax payer may be saved from the hardships and inconveniences caused by unnecessary litigations.
(iii) Productive investment: Tax planning is a measure of awareness of the taxpayer to the intricacies of the taxation laws and it is the economic consciousness of the income earner to find out the ways and means of productive investment of the earnings which would go a long way to minimize its tax burden.
(iv) Healthy growth of economy: The saving of earnings is the only basement upon which the economic structure of human life is founded.
(v) Economic stability: Productive investment increase contours of the national economy embracing in itself the economic prosperity of not only the tax payers but also of those who earn the income not chargeable to tax. The planning thus creates economic stability of the nation and its people by even distribution of economic resources.
(i) Residential status and citizenship of the assessee: We know that a non-resident in India is not liable to pay income-tax on incomes which accrue or arise and are also received outside India, whereas a resident in India is liable to pay income-tax on such incomes.
(ii) Heads of income/assets to be included in computing net wealth: Before the Tax-planner goes in for his task; he has to have a full picture of the sources of Income of the tax payer and the members of his family
Vivaad Se vishwas scheme has been introduced by Government of India to provide one time opportunity for settlement of pending litigation by paying the basic tax amount and complete waiver of interest and penalty.
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
how to sell pi coins in South Korea profitably.DOT TECH
Yes. You can sell your pi network coins in South Korea or any other country, by finding a verified pi merchant
What is a verified pi merchant?
Since pi network is not launched yet on any exchange, the only way you can sell pi coins is by selling to a verified pi merchant, and this is because pi network is not launched yet on any exchange and no pre-sale or ico offerings Is done on pi.
Since there is no pre-sale, the only way exchanges can get pi is by buying from miners. So a pi merchant facilitates these transactions by acting as a bridge for both transactions.
How can i find a pi vendor/merchant?
Well for those who haven't traded with a pi merchant or who don't already have one. I will leave the telegram id of my personal pi merchant who i trade pi with.
Tele gram: @Pi_vendor_247
#pi #sell #nigeria #pinetwork #picoins #sellpi #Nigerian #tradepi #pinetworkcoins #sellmypi
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how to sell pi coins on Bitmart crypto exchangeDOT TECH
Yes. Pi network coins can be exchanged but not on bitmart exchange. Because pi network is still in the enclosed mainnet. The only way pioneers are able to trade pi coins is by reselling the pi coins to pi verified merchants.
A verified merchant is someone who buys pi network coins and resell it to exchanges looking forward to hold till mainnet launch.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
how can I sell my pi coins for cash in a pi APPDOT TECH
You can't sell your pi coins in the pi network app. because it is not listed yet on any exchange.
The only way you can sell is by trading your pi coins with an investor (a person looking forward to hold massive amounts of pi coins before mainnet launch) .
You don't need to meet the investor directly all the trades are done with a pi vendor/merchant (a person that buys the pi coins from miners and resell it to investors)
I Will leave The telegram contact of my personal pi vendor, if you are finding a legitimate one.
@Pi_vendor_247
#pi network
#pi coins
#money
What website can I sell pi coins securely.DOT TECH
Currently there are no website or exchange that allow buying or selling of pi coins..
But you can still easily sell pi coins, by reselling it to exchanges/crypto whales interested in holding thousands of pi coins before the mainnet launch.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and resell to these crypto whales and holders of pi..
This is because pi network is not doing any pre-sale. The only way exchanges can get pi is by buying from miners and pi merchants stands in between the miners and the exchanges.
How can I sell my pi coins?
Selling pi coins is really easy, but first you need to migrate to mainnet wallet before you can do that. I will leave the telegram contact of my personal pi merchant to trade with.
Tele-gram.
@Pi_vendor_247
Introduction to Indian Financial System ()Avanish Goel
The financial system of a country is an important tool for economic development of the country, as it helps in creation of wealth by linking savings with investments.
It facilitates the flow of funds form the households (savers) to business firms (investors) to aid in wealth creation and development of both the parties
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how to sell pi coins at high rate quickly.DOT TECH
Where can I sell my pi coins at a high rate.
Pi is not launched yet on any exchange. But one can easily sell his or her pi coins to investors who want to hold pi till mainnet launch.
This means crypto whales want to hold pi. And you can get a good rate for selling pi to them. I will leave the telegram contact of my personal pi vendor below.
A vendor is someone who buys from a miner and resell it to a holder or crypto whale.
Here is the telegram contact of my vendor:
@Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
2. ❑ Tax is compulsory contribution to state revenue levied by the government on
workers income and business profits or added to the cost of goods, services and
transactions. It may be direct tax or indirect tax. In simple words tax is a money
that people have to pay the government.
❑ Direct tax is tax which is levied on the income or profits of the persons who pays it,
rather than on goods (or) services for example income tax.
❑ Indirect tax is levied on goods and services rather than on income (or) profits for
example goods and service tax.
PAYING TAXES IS OUR RESPONSIBILITY
What is tax ?
3. ❑ A taxpayer is an individual or corporation who pay taxes annually on their
earnings as per the provisions of the income tax act 1961. Once you file income tax
return and disclose your earnings, it becomes legal.
❑ The goal of a taxpayer is to minimize his tax liability.
To achieve this goal 3 methods are commonly used
they are,
1) TAX EVASION – VERY BAD
2) TAX AVOIDANCE – OK
3) TAX PLANNING – VERY GOOD
-Methods commonly used by the tax
payers to minimize tax liability
4. ❑ Tax evasion refers to avoidance of tax payment / tax liability illegally, it is a fraud.
❑ In other words tax evasion is illegal way of reducing tax liability by suppressing
income. The unaccounted income is known as black money.
❑ Tax evasion is unethical and has to be condemned. The court also does not favor any
such means. Tax evasion once proved not only attracts heavy penalties but may also
leads to prosecution.
❑ Tax evasion typically involves failing to report income or improperly claiming
deductions that are not allowed or authorized. The methods of tax evasion are
1. Under disclosure of income
2. Inflating the expenses and thus reducing the real income
3. Manipulation of accounts to reduce the real income
4. Violation of rules and regulations of laws with the intention to save the tax
5. Benami transactions
TAX EVASION
5. ❑ In the words of Justice Chinnapa Reddy.” Tax Avoidance is an act of dodging tax
authorities without breaking the law”.
❑ Thus tax avoidance is an attempt to manage financial
affairs by using colorable devices with the intention of
reducing the tax liability. Many a time tax avoidance
involves an attempt to reduce tax burden by taking
advantage of certain loopholes or weaknesses in tax laws.
❑ In India before the decision of supreme court in McDowell & Co. Ltdvs.CTO, tax
avoidance was regarded as a lawful act. But after the pronouncement of the case it
was held that tax avoidance is illegal because of following reasons:
1. There is substantial loss of public revenue required for the income development of
the nation.
2. It results in the creation of black money economy which results into inflation.
3. It results into injustice and inequality caused by the tax avoidance for the honest tax
payers.
Till now the rules settled under above case act as guiding principle for unpinning coocked
tax planning.
TAX AVOIDANCE
6. TAX AVOIDANCE TAX EVASION
▪ It means planning for minimization
of tax according to legal requirement but it
defeats the basic intention of legislature.
▪ it meansavoidingof tax liabilityillegally.
▪ It takes in to accountsvarious loopholes
of the law.
▪ It done by unfair means likefraud
suppressionof facts etc
▪ Tax avoidanceis done with in the legal
framework.
▪ Tax evasion is not legal and assessewho
is guilty under the provisionsofthe law.
▪ It is planningbeforethe actual liabilityfor
tax comes into existence.
▪ It is avoidanceof payment of tax after the
liabilityoftax has arisen.
TAX AVOIDANCE VS TAX EVASION
7. ❑ Tax planning means working out a plan to take maximum benefits of exemptions
deductions and rebates etc., allowed by law and reducing the tax liability i.e. Tax
planning is the technique of avoidance of tax of higher rate of tax planned in advance
before the income is earned.
❑ It is basically a technique to reduce tax burden
or tax liability. This is a legal measure to reduce
the tax liability. Tax planning is applicable for
every head of income say salary, business, house,
property and other long term incomes.
❑ The income tax act itself provided certain planning measures to reduce the tax burden to
the assesse. For example house property income can be reduced by availing loan for
construction or purchase of house. The interest paid is tax deducted and the principle
amount is allowed for calculating rebate under section 88 of IT act.
❑ So, while purchasing the house do not purchase the house with own money. Avail
housing loan to reduce the tax burden on house property income.
TAX PLANNING
8. For implementing tax planning one can use different ways to save his tax
money. There are some areas where we can plan to reduce our tax liability—
❑ Reducing taxable income: one can use government schemes and programs to
reduce his taxable income, it will directly reduce his tax liability.one should try to
minimize his taxable income to reduce his tax amount.
❑ Deduction planning: there are many deductions provided by a taxation law. One
should implement and plan those deductions. The major area of deduction is
available under Sec 80C where one can claim a deduction for life insurance, mutual
funds, home loan interest and many more
❑ Investment in tax planning: assesse can invest in policy for future plans and save
his money from tax.
❑ Year – end planning strategies: one can reduce his tax liability for the next year by
prepaying those expenses which will be imposed next year and can make a strategy
before starting the new financial year.
AREAS OF TAX PLANNING
9. Tax planning is an arrangement to reduce tax liabilities. How can an individual reduce
his tax liability by planning at the beginning of the financial year? Let’s take a look at
some examples—
1) Mr. W who is an individual of age 45 years, whose taxable income is rs.5,00,000
and except a premium of medical insurance of rs.10,000 he has invested no money
in any scheme. After calculating all his income details and deductions his gross tax
amount will be rs.16,224.
2) Mr. Y who is an individual of the same age as Mr.W and all the income details are
similar to Mr.W But Mr.Y invested his money in scheme offered by the
government under Sec 80C , his gross tax amount will be rs.0
This is how one can reduce his tax liability by investing in the right schemes and
programs or otherwise has to pay high tax rates.
Tax planning examples
10. Income tax evasion is a crime and can attracts severe penalties in India. With
advancement in technology, the compliance with respect to income tax payment is
being tracked more accurately by the income tax department.
❖ Failure to pay tax as per self assessment: as per section 140 A (1) if the tax payer
fails to pay either wholly or partly self assessment tags or interest then the tax payer
will be treated as a default person. If the assesse declare as a default person then as
per sec 221(1) penalties amount will be imposed by the assessing officer. The
criterion for penalty is that it can not exceed the arrear amount.
❖ Failure to pay tax as per demand notice: if a demand notice sent to the tax payer
asking for the payment of tax then the tax payer has to pay the amount in 30 days to
the department and person mentioned in the notice. Failure to make the payment
will incur further penal provisions as well as the tax payer will be treated as default
assesse for defaulting in the payment of tax.
❖ Penalty for non filing income tax return: if the return of income is not furnished
as required under sec 139(1) then the assesse officer can penalize the tax payer with
a penalty of rs.5000/-
Penalties for income tax in India
11. ❖ Failure to comply with income tax notice: if the tax payer to comply with the
notice issued under section 142(1) or 143(2) then the assessing officer can issue a
notice to the tax payer asking (a) to file the return of income (b) ask the tax payer
to furnish in writing all the details of assets and liabilities.
❖ Failure to comply with TDS regulations: every person who deducts tax at source
or collects tax at source is also required to collect the tax deduction account
number or the tax collection account number (TAN). The failure to obtain this tax
deduction or collection number calls for a penalty of rs. 10,000. failure to obtain the
numbers could also mean quoting incorrect tax deduction or collection number.
❖ Failure to pay dividend distribution tax : as per section 115-0 if a company pays
dividend distribution tax on the dividends it has shared then the penalty incurred
would be the amount equal to the tax that was not deducted or paid.
❖ Failure to furnish accurate information: if a tax payer does not furnish accurate
information or finds out about inaccuracy of the furnished details after submission
but does not get it corrected with in ten days of submission or knows about the
inaccuracy during submission but does not inform the income tax authority then
the penalty could be a payment of rs. 50,000/-. Penalty revisions are being done to
make rules stringent for inaccurate detail submissions and will soon be notified.
There are also relaxation on penalties for genuine and deserving cases. The
commissioner of income tax has power to completely forego or reduce the penalty if
the all the facts are clearly presented.