Q.
1

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.

Which of the following codes is correct?

  • Both the statements (I) and (II) are correct

  • Statement (I) is correct but  (II) is incorrect

  • Both the statements (I) and (II) are incorrect

  • Statement (II) is correct but  (I) is incorrect