The efforts of a tax payer to identify and undertake such transactions that will result in reduction / elimination of tax liabilities is called as ____________.

Tax evasion

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Tax planning

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Tax avoidance

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Tax reduction

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None of the above

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Solution

The correct option is B Tax planning
Tax planning involves the utilization of the various provisions of statute which enable the tax payer to reduce the tax liability without violating the letter and spirit of the law.

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The efforts of a tax payer to identify and undertake such transactions that will result in reduction / elimination of tax liabilities is called as ____________.

The correct option is B Tax planningTax planning involves the utilization of the various provisions of statute which enable the tax payer to reduce the tax liability without violating the letter and spirit of the law.

The correct option is B Tax planning
Tax planning involves the utilization of the various provisions of statute which enable the tax payer to reduce the tax liability without violating the letter and spirit of the law.