In the wake of CBDT announcement of implementation of General Anti Avoidance Rule (GAAR) from April 1 2017, consider the following statements 1) Tax avoidance is illegal means to reduce tax liabilities, i.e. falsification of books, suppression of income,

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Q: 24 (Current Affairs-JAN/2017)
In the wake of CBDT announcement of implementation of General Anti Avoidance Rule (GAAR) from April 1 2017, consider the following statements
1) Tax avoidance is illegal means to reduce tax liabilities, i.e. falsification of books, suppression of income, overstatement of deductions, etc.

2) Tax Evasion means an attempt to reduce tax liability through legal means, i.e. to regulate your affairs in such a way that you pay the minimum tax imposed by the Act as opposed to the maximum.

Which of the above statements is/are not correct?

question_subject: 

Economics

stats: 

0,105,105,27,29,105,49

keywords: 

{'tax avoidance': [0, 0, 0, 2], 'tax evasion': [0, 0, 0, 3], 'general anti avoidance rule': [0, 0, 0, 2], 'tax liabilities': [0, 0, 0, 1], 'tax liability': [0, 1, 0, 1], 'deductions': [0, 0, 0, 1], 'minimum tax': [0, 0, 0, 1], 'illegal means': [0, 0, 0, 1], 'legal means': [0, 0, 0, 1], 'suppression': [0, 1, 1, 5], 'gaar': [0, 0, 0, 3], 'cbdt announcement': [0, 0, 0, 1], 'falsification': [0, 0, 0, 1]}

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