TAX PLANNING V/S TAX AVOIDANCE V/S TAX EVASION
Though the words - Tax Planning, Tax Avoidance and Tax Evasion - sound connected, yet there is significant difference in the three.
Tax Planning is the way to reduce the tax liability by availing the exemptions and deductions mentioned explicitly in the Income Tax Act and Rules. Planning one's income and expenses so as to get the benefit of various exemptions and deductions is called Tax Planning. Investments in PPF, NSC, LICI, etc are eligible for deductions. Tax Payers are advised to make full use of the Tax Planning opportunities.
Tax Avoidance is done when the tax payer takes advantage of the loopholes in the tax regime in order to reduce the tax liability. Tax Avoidance is also not illegal.
There is a very thin line of difference between Tax Planning and Tax Avoidance. Where in Tax Planning, a Tax Payer is making use of the opportunities provided explicitly by the Government, in Tax Avoidance the Tax Payer makes use of the loopholes of the Tax Laws. However both the ways of reduction of Tax Burden are cent percent legal.
Tax Evasion involves illegally paying lower taxes than one is supposed to pay. This can be done by understating the income or overstating the expenses. People tend to transact in cash so as to avoid the true maintenance of books of accounts. It may cause heavy penalty and legal actions against the assessee. This practice of Tax Avoidance should be discouraged as it dampens the national economy.
DCS aims to provide a solution specifically tailored for you. The team distinguishes itself by delivering services which are directly attributable to the areas of compliance for the client.
DCS strives to attain perfection and accuracy through its unwavering commitment. Our project with every client is handled very carefully and the execution is in safe expert hands.
DCS envisions a comfortable tax and compliance world for its clients. We intend to provide the best experience to our clients, right from the enquiry to the completion of the project. This is a two way journey and will be successful only on the complete understanding between the two. We wish to create a sense of security in the minds of our clients. We aim to nurture a winning network of clients and their tax partner; together we create mutual, enduring value.
DCS strives for the success of its client network by creating a vivacious work environment that focuses on creative solutions that deliver confidence in a sustainable and socially responsible manner. The team at DCS is focused and well aligned hence, it assures the most appropriate solution for all the tax and compliance related perturbation.
- A very dedicated team
- Strong knowledge base
- Distinguished time and work management skills
- Positive and active work environment
- Regular updates on the changing laws and rules
- Rapidly growing need for tax planners and managers
- Emergence of new tax regimes like GST
- Growing awareness in small and young entrepreneurs regarding the need of effective maintenance of books and accounts