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Statement (I): If the tax liability has been reduced within the legal framework, it is tax planning.
Statement (II): If tax liability has been reduced to get benefit of deduction available under the income tax, it is called tax evasion.
In the context of the above two statements, which one of the following is correct?

Statement (I): If the tax liability has been reduced within the legal framework, it is tax planning.
Statement (II): If tax liability has been reduced to get benefit of deduction available under the income tax, it is called tax evasion.
In the context of the above two statements, which one of the following is correct? Correct Answer Statement (I) is correct, but (II) is incorrect

Related Questions

Statement I): If the tax liability has been reduced within the legal framework, it is tax planning. Statement II): If tax liability has been reduced to get the benefit of deduction available under the income tax, it is called tax evasion. In the context of the above two statements, which one of the following codes is correct?
Given below are two statements: Statement I : Deferred Tax Liabilities (Net) is the amount of tax on the temporary difference between the accounting income and taxable income. It arises when the accounting income is more than the taxable income. Statement II : Deferred Tax Liabilities (Net) and Deferred Tax Assets (Net) are only book entries i.e. they are neither actual liability nor actual asset. In the light of the above statements, choose the correct answer from the options given below:
Which of the following components are true about tax planning?
1. Tax planning is the process of analyzing a financial plan or a situation from a tax perspective.
2. The objective of tax planning is to make sure there is tax efficiency. With the help of tax planning, one can ensure that all elements of a financial plan can function together with maximum tax-efficiency.
3. Reducing tax liability and increasing the ability to make contributions towards retirement plans are critical for success.
4. Tax planning comprises various considerations such as size, the timing of income, timing of purchases, and planning are concerned with other kinds of expenditures.
5. The chosen investments and the various retirement plans should go hand-in-hand with the tax filing status as well as the deductions in order to create the best possible outcome.
Income up to Rs. 5,00,000 is tax-free. Up to Rs. 10,00,000, income above Rs. 5,00,000 is taxed at 10% and if the income exceeds Rs. 10,00,000, the tax rate is 20% for income above Rs. 10,00,000. If the income of X is Rs. 15,00,000, then what percentage of his income will be paid as tax?
Which of the following benefits are given under the Employees State Insurance Act, 1948? (a) Sickness benefit, maternity benefit. (b) Disablement benefit, dependent benefit. (c) Medical benefit for employee and his dependents. (d) Funeral benefit.
In the following question, sentences of a paragraph have been jumbled and labelled as A, B, C, and D. You are required to rearrange the jumbled sentences of the paragraph and mark your response accordingly by selecting the correct option. A: Per capita income (PCI) or average income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. B: It is calculated by dividing the area's total income by its total population. C: Per capita income is national income divided by population size.  D: Per capita income is often used to measure a sector's average income and compare the wealth of different populations.
A university library budget committee must reduce exactly five of eight areas of expenditure - I, J, K. L, M, N, O and P - in accordance with the following conditions: If both I and O are reduced, P is also reduced. If L is reduced, neither N nor O is reduced. If M is reduced, J is not reduced. Of the three areas J, K and N exactly two are reduced. If both K and N are reduced, which one of the following is a pair of areas neither of which could be reduced?
A university library budget committee must reduce exactly five of eight areas of expenditure—I, J, K, L, M, N, O and P—in accordance with the following conditions: If both I and O are reduced, P is also reduced.
If L is reduced, neither N nor O is reduced.
If M is reduced, J is not reduced.
Of the three areas J, K, and N exactly two are reduced. Question : If both K and N are reduced, which one of the following is a pair of areas neither of which could be reduced?
the following questions are accompanied by three statements (I), (II), and (III). You have to determine which statements(s) is/are sufficient/necessary to answer the questions. Find Virat’s income? I. Virat’s income is 30% less than his wife, whose provident fund deduction at the rate of 5% is Rs. 975 per month.  II. Rohit spends 30% of his income on house rent, 15% of which is accessory bill and Virat’s expenditure on house rent is Rs. 4500 more than that of Rohit’s. III. Dhoni’s income is 10% more than Rohit’s income.
The following questions are accompanied by three statements (I), (II), and (III). You have to determine which statements(s) is/are sufficient/necessary to answer the questions. Find Virat’s income. I. Virat’s income is 30% less than his wife, whose provident fund deduction at the rate of 5% is Rs. 975 per month.  II. Rohit spends 30% of his income on house rent, 15% of which is accessory bill and Virat’s expenditure on house rent is Rs. 4500 more than that of Rohit’s. III. Dhoni’s income is 10% more than Rohit’s income.