State with reasons whether the following Act can be considered as Tax Planning or Tax Management or Tax Evasion: (i) On 2nd Jan. 2026, Mr. Darshil…
CA Final · Direct Tax Laws and International Taxation · PYQS · May 2026
State with reasons whether the following Act can be considered as Tax Planning or Tax Management or Tax Evasion: (i) On 2nd Jan. 2026, Mr. Darshil sold his residential house property which he had purchased on 20th May 2005, resulting in a long-term capital gain of 30,00,000. He invested the entire amount of 30,00,000 on 15th April 2026 in bonds issued by Indian Renewable Energy Development Agency (IREDA) which are redeemable after 5 years.
Suggested Answer and Working Notes:
Tax Planning: For the purpose of saving tax on the long-term capital gains arising on transfer of residential house property, Mr. Darshil invested the entire amount of capital gains in bonds issued by Indian Renewable Energy Development Agency (IREDA) which are redeemable after 5 years. As the investment was made within the prescribed time and in the bond which is notified as eligible for deduction under section 54EC, he is eligible for the tax benefits. This act of Mr. Darshil would tantamount to
Topics: Tax Planning, Tax Avoidance & Tax Evasion
Related Questions in this Topic
- Mrs. Varsha is engaged in business and her turnover for the PY 25-26 amounts to 18 crore. She has duly complied with the...
- Rahul, an Indian citizen, left India and settled in United Kingdom from 10.4.2016. He had never left India previously si...
- (ii) Yellow Ltd. (an Indian company) is a wholly owned subsidiary of Pink Ltd., a company incorporated in Country H. Pin...
- Discuss whether the provisions of General Anti-Avoidance Rules can be invoked in the following scenarios: (i) Red Ltd.,...
- M/s Durga Associates, a partnership firm, obtained declaration in Form No. 15G/15H from its lenders/depositors (wherever...