Page 199 - DCOM508_CORPORATE_TAX_PLANNING

Corporate Tax Planning

Notes Sole Proprietors: A business structure in which an individual and his/her company are considered
a single entity for tax and liability purposes.
Tax Liability: The total amount of tax that an entity is legally obligated to pay to an authority as
the result of the occurrence of a taxable event is called tax liability.

Tax Planning: Tax planning is the processes used by people and businesses to pay taxes.

8.7 Review Questions

1. Write short note on business organisation.
2. Discuss the various forms of business organisations.
3. Highlight the factors involved in selection of organisation.

4. What is sole proprietorship? Elucidate its features.
5. Describe the tax aspects of a proprietorship.
6. Throw some light on the advantages and disadvantages of sole proprietorship.
7. What is the position of firm under the Income Tax Act?

8. Elucidate the provisions relating to taxation of partnership fi rms.
9. Discuss the advantages and disadvantages of partnership.

10. “Planning of taxes should be done in an efficient manner so as not to jeopardise the business

goals of expansion, profits and growth.” Explain.
Answers: Self Assessment

1. Long 2. Sole Proprietorship
3. Partnership 4. Company

5. False 6. False
7. True 8. True
9. Indian Partnership Act, 1932 10. Profession
11. Separate 12. Association of Persons (AOP)

13. True 14. False
15. True 16. True

8.8 Further Readings

Books Ahuja, G. K. & Gupta, Ravi, Systematic Approach to Income Tax, Bharat Law
House.
Aggarwal, K., Direct Tax Planning and Management, Atlantic Publications.
Lakhotia, R.N., Income Tax Planning Handbook, Vision Books.
Singhania, V. K. & Singhania, Kapil, Direct Taxes law & Practice. Taxmann
Publications.
Srinivas E. A., Handbook of Corporate Tax Planning, Tata McGraw Hill.

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