Which of the following are true in tax planning 1 It...

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Which of the following are true in tax planning?
1. It is futuristic in its approach.
2. It has limited scope compared to tax management.
3. The benefits arising from it are limited particularly in the short-run.
4. Its main objective is to reduce the tax liability.

A. 1, 2 and 3

B. Both 1 and 2

C. Both 1 and 4

D. 2, 3 and 4

Answer: Option C


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List out from the given statements the important ethical principles that a business should follow:
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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.
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