Corporate Tax Planning : Concepts and significance of corporate tax planning; Tax avoidance versus tax evasion; Techniques of corporate tax planning;

1. An exercise undertaken to minimize tax liability through the best use of all available allowances, deductions, exclusions, exemptions, etc. to reduce income-tax liability is known as –
   (a) Tax evasion
   (c) Tax avoidance
   (b) Tax planning
   (d) Tax dodging (CS December 2014)
2. Tax planning is honest and right approach to attain the maximum benefit of taxation laws within its framework only.
   Objectives of tax planning are:
   (1) Productive investment
   (2) Un-healthy growth of economy
   (3) Minimisation of litigation
   (4) Increase in tax liability.
   Select the correct answer from the options given below _
   (a) (1), (2) and (3) (c)
   (1), (2) and (4)
   (b) (1) and (3)
   (d) (1), (2), (3) and (4). (CS December 2015)