Three simple steps to answer any Case Study in any subject ( IPCC & Final )

Three simple steps to answer any Case Study in any subject ( IPCC & Final ) :

Step 1 : Interpret the problem given in question. Write down what exactly the case study is related to.

Step 2 : Write the Provisions of the section to which case study is related. Final students should mention the Section Number & IPCC Student can mention section if they remember properly otherwise not mandatory.

Step 3 : In last step conclude the problem given in case study by referring provisions of relevant section as well as you are advisable to give any Case Law Reference.

Now if anyone have any doubt they can discuss it with me.

All the best

credit:- ca queries

Tax Evasion vs Tax Avoidance vs Tax Mitigation vs Tax Planning



Lord Tomlin has well said “Every man is entitled to order his affairs so that tax attaching under the appropriate Acts is less than it otherwise would be” (IRC v Duke of Westminster).   However, people adopt various methods so that they can reduce their total tax liability.  


The methods adopted to reduce their tax liability can be broadly put into four categories : “Tax Evasion”;  “Tax Avoidance” , “Tax Mitigation”, “Tax Planning”.  The difference between these four methods some times become blurred  owing to the perception of the tax authorities and / or tax payer.



Tax Evasion :


Tax Evasion term is usually used to mean ‘illegal arrangements where liability to tax is hidden or ignored i.e. the tax payer pays less than he is legally obligated o pay hy hiding income or information from tax authority.   Thus, here the tax liability is reduced by “illegal and fraudulent”  means.


Tax Avoidance :


Tax Avoidance refers to the legal means so as to avoid or reduce tax liability, which would be otherwise incurred, by taking advantage of some provision or lack of provision in the law.   Thus, in this case tax payer tries to reduce his tax liability but here the arrangement will be legal, but may not be as per intent of the law.   Thus, in this case, tax payer does not hide the key facts but is still able to avoid orreduce tax liability on account of some loopholes or otherwise.




Tax Mitigation :


“Tax Mitigation” is a situation where the taxpayer takes advantage of a fiscal incentive afforded to him by the tax legislationby actually submitting to the conditions and economic consequences that the particular tax legislation entails.  A good example of tax mitigation is the setting up of a business undertaking by a tax payer in a specified area such as Special Economic Zone (SEZ).



Tax Planning :


Tax Planning is defined as “arrangement of a person’s business and / or private affairs in order to minimize tax liability”. 




Conclusion :


The above four terms certainly cover four different set of situations, but can be a bit confusing for a person who is not well versed in tax issues and legal matters.   Sometimes there is a very thin line between these two terms, and in view of the perceptions of tax authorities and tax payer, there may be confrontation as perception of tax authorities that it is matter of tax avoidance and not tax mitigation or planning can lead to much higher taxes.   In view of such thin line, GAAR has been under fire from the tax payers as tax authorities could misuse the provisions to harass the tax payers by including even the genuine cases of tax mitigation / planning to be methods for tax avoidance.




Quick look at the draft rules
1) Limit on number of One Person Companies
(‘OPCs’) – One person cannot form more than 5
2) Rotation of auditors -Incoming auditor or
audit firm shouldn’t be under the same network
or operating under the same trademark or
brand as the outgoing auditor or audit firm.
Rotation of joint auditors
should be in such a way that all joint auditors
do not complete their term in the same year;
3) Auditor’s duty to report fraud – Auditors are
required to report material frauds to the Central
4) Disqualification of auditors –
a. Due to indebtedness – Limit increased from
Rs.1,000 to Rs.1,00,000.
b. Due to a relative holding shares – A relative
of an auditor may
hold securities of face value or interest in the
company not exceeding Rs 1,00,000;
5) Compulsion to appoint a women director –
At least one woman director is compulsory to be
appointed in case of listed companies and
unlisted companies with paid-up share capital of
Rs.100 crores or more.


Hi.. freinds …. i want to share some thing important

This is from my experience of campus placement proggramme conducted by ICAI
this is specially for students coming from small towns like me.
The main problem we are facing is lack of good communication skill, specially fluency in spoken english .
most of slection proedure goes like this
1. Group discusion
2. Technical interview
3. HR interview

Due to lack of communication skill most of would not able to clear GD itself .Although we have sound technical knowledge bt it will be waste if we are not able to clear GD round…

Another thing is that u should choose ur articleship firm veery carefully biggest mistake is that i had choosen a proprietership firm instead of a partnership firm .In partnership firm the exposure will be much greater also it will effect ur interview pprocess

Also if u want to get shortlisted in more companies try to clear both group in first attemp or 2nd attemp . It will increase ur chances of getting job .

So every one should start working on ur communication skill from now itself . Atleast give half n hour dailly to it .its my genuine advise to all of you ..

REGARDS :- Alkit Jain