Untitled Flashcards

Front

Mr. Arjun, a salaried employee, invests ₹1.5 lakhs every year in a Public Provident Fund (PPF) account to claim deduction under section 80C of the Income Tax Act.

Back

Tax Planning

Front

Mr. Raj, a businessman, transfers ₹10 lakhs to his wife (who has no other source of income) as a gift. His wife then invests this money in a fixed deposit and earns interest income.

Back

Tax Avoidance

Front

ABC Pvt. Ltd. claims bogus expenses by creating fake bills to show higher business costs and lower profit

Back

Tax Evasion

Front

YZ Ltd., an Indian company, sets up a shell company in a tax haven country with no real operations, just to route profits and avoid higher taxes in India.

Back

Tax Evasion

Front

Ms. Neha sells a residential house and invests the capital gains in bonds under section 54EC within 6 months to claim exemption

Back

Tax Planning

Front

Mr. Shyam, a trader, accepts payments of ₹3 lakhs in cash for sales and does not report it in books to evade GST and Income Tax.

Back

Tax Evasion

Front

1.      MN Ltd. structures its employee remuneration in the form of tax-free dividends instead of salary to reduce overall tax liability.

Back

Tax Avoidance

Front

Ms. Rina, a software engineer living in Mumbai, pays rent to her father and claims HRA exemption. However, her father includes this rent in his income and files his return accordingly.

Back

Tax Planning

Front

Mr. Varun has a savings account that earns ₹35,000 in interest annually. He does not disclose this income in his return.

Back

Tax Evasion

Front

1.      Mr. Zaid buys agricultural land in a rural area with the intention to claim that any income or capital gain from its sale will be exempt.

Back

Tax Planning