It is a professional way of reducing one's tax burden. The tax payer study's the income tax act and detects some loophole which he can capitalize 011 to reduce the tax burden
It may be applied through different ways of tax panning e.g.
a) Financing decision
b) Lease or buy decision
c) Investment decision i.e. investing in areas where the return is exempt or where the return will be subjected to lower taxes
d) Non-distribution of dividends i.e. shortfall distribution
e) The form of business ownership
f) Production activities
Wilfykil answered the question on February 25, 2019 at 10:20
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