Every assessee or individual in a country dreams about finding a way to avoid tax. They want to use any means for not paying or evading tax. Tax Avoidance is one term that serves this purpose i.e ‘to reduce the amount of tax from a firm, person, or any legal entity’s earnings.” Now, what is tax avoidance? Let’s read about it in detail.
Tax Avoidance is a term that signifies a situation in which a taxpayer manages to reduce his tax liabilities by taking advantage of the ambiguities and loopholes in the legal provisions. The best part about tax avoidance is that it isn’t illegal and is some sort of a legally allowable way for reducing the tax burden.
Now you know what is the meaning of tax avoidance.
Features of Tax Avoidance:An arrangement entered into solely by or primarily to obtain tax benefits
Every legal way to reduce or prevent tax liability which otherwise you’d have to incur, by taking advantage of any provision or lack of provision in the statutes of India.
It includes the legal exploitation of tax laws to one’s own benefit.
What is Double Tax Avoidance AgreementDTAA (Double Taxation Avoidance Agreement) is a tax treaty signed between any two/multiple countries (such as India and another country) which allows taxpayers to avoid paying double taxes on their income earned from the residence country and the source country. Currently, India has double tax avoidance treaties with 80+ countries around the world.
Benefits of Double Tax Avoidance Agreement:Exemption from taxes
Tax credits
Lower Withholding Tax (TDS or Tax Deduction at Source)
What is Tax Avoidance In Hindiयह
एक
ऐसा
शब्द
है
जो
उस
स्थिति
को
दर्शाता
है
जिसमें
एक
करदाता
कानूनी
प्रावधानों
में
अस्पष्टताओं
और
खामियों
का
लाभ
उठाकर
अपनी
कर
देनदारियों
को
कम
करने
का
प्रबंधन
करता
है।
इसके
बारे
में
सबसे
अच्छी
बात
यह
है
कि
यह
अवैध
नहीं
है
और
कर
के
बोझ
को
कम
करने
के
लिए
कानूनी
रूप
से
स्वीकार्य
तरीका
है।
Read more:
What is tax fraud?
Who is not required to file income tax return?
How To Save Tax Apart From 80C?
How much tax can be saved by home loan?
I hope now you have a complete understanding of what is tax avoidance.
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Authors Of The Question
What is tax avoidance?
Ruchika
262Views
2 Year
2022-03-21T18:15:15+00:00 2022-03-22T18:50:39+00:00Comment
1 Answers
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