Question:medium
Which of the following statements is incorrect?
Which of the following statements is incorrect?
Show Hint
Tax planning and tax avoidance are legal, but tax evasion is illegal. Never confuse avoidance with evasion.
Updated On: Mar 11, 2026
- Tax planning promotes professionalism and strengthens economic conditions
- Tax planning is within the legal purview
- Tax evasion is a legal offence which may result in prosecution
- Tax avoidance is unlawful
Show Solution
The Correct Option is D
Solution and Explanation
Step 1: Definitions.
- Tax planning: Legal and promotes efficiency.
- Tax avoidance: Legal, minimizes tax liability within the legal framework.
- Tax evasion: Illegal.
Step 2: Identify incorrect statement.
The statement "Tax avoidance is unlawful" is incorrect.
Was this answer helpful?
1
Top Questions on Income Tax Law and Accounts
- Which of the following is not a part of the Circular flow of Income in a closed economy?
- CUET (PG) - 2025
- Commerce
- Income Tax Law and Accounts
- Which of the following statements are true? (A) Agricultural income earned in India is exempted from tax
(B) Scheme of partial integration is available for individual, HUF, AOP, BOI or artificial judicial person
(C) For partial integration, net agricultural income of the individual assessee during the previous year should not exceed Rs. 5000
(D) For partial integration, non-agricultural taxable income should exceed the exemption limit
- CUET (PG) - 2025
- Commerce
- Income Tax Law and Accounts
Match List-I with List-II:
- CUET (PG) - 2025
- Commerce
- Income Tax Law and Accounts
- Which of the following statements are correct? (A). A proportional income tax is an automatic stabiliser.
(B). An increase in autonomous spending raises the equilibrium level of income.
(C). As the marginal propensity to consume gets larger, the lower the multiplier will be.
(D). A reduction in transfer payments lowers the output.- CUET (PG) - 2025
- Commerce
- Income Tax Law and Accounts
- Want to practice more? Try solving extra ecology questions todayView All Questions