n NISM Certifications
XXI NISM Series XXI-A
Medium

Which of the following is a primary objective of 'Tax Planning'?

Practice question from NISM XXI A for PMS - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. To reduce tax liability legally

    Correct answer

  2. B

    To evade taxes illegally

  3. C

    To avoid paying taxes altogether

  4. D

    To maximize tax payments

Why this is the answer

Tax planning involves arranging financial affairs to minimize tax liability within the legal framework.

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