Specify whether the following acts can be considered as (i) Tax planning; (ii) Tax management; or (iii)

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Question:

Specify whether the following acts can be considered as (i) Tax planning; (ii) Tax management; or (iii) Tax evasion.

(i)P pays a premium of Rs.10,000 for a health Insurance policy to reduce his total income from Rs. 6,40,000 to Rs. 6,30,000 by claiming deduction u/s 80D (assuming Mr. P has not opted for section 115BAC of the Income-tax Act, 1961).

(ii)SQL Ltd. pays advance tax by estimating its total income in the previous year to ensure timely compliance.

(iii)An individual taxpayer making a tax saver fixed deposit of Rs. 1,00,000 in a nationalized bank.

(iv)A bank obtaining declaration from depositors in Form No. 15G /15H and forwarding the same to income-tax authorities.

(v)Z debits his household expenses as business expenses in the books.