Maximization of PAT - Not avoiding Tax

[DEVKUMAR KOTHARI]

MAXIMIZATION OF PAT SHOUDL NOT BE CONSIDDERED AS AVOIDANCE OF TAX.STT is a convenient way of collection of more revenue.Lower rate of taxorexemption is allwoed when STT is paid. A change in fiscal polciy by government necessiate change in policy of tax payers. Tax payer is free to adopt such policies, which results into lower taxes. In view of levy of STT, if a person changes policy to hold shares as investment instead of stock or vice versa as it may suit to him, then such change in policy or accounting system should not be viewed with suspiciion or doubt.Such decisions or change in policy should be willingly accepted by the revenue authorities as bonafide commercial decision becasue aim of any investor or trader is not to avoid tax but to maximize his PAT.

AI Summary

Maximizing Profit After Tax Isn't Tax Avoidance: Legitimate Strategy or Complicated Tax Matter? The discussion centers on the concept that maximizing Profit After Tax (PAT) should not be equated with tax avoidance. The initial post argues that taxpayers should be free to adjust their investment strategies, such as treating shares as investments or stock, in response to fiscal policy changes without suspicion. It suggests that these decisions should be recognized as legitimate commercial actions aimed at maximizing PAT. The reply acknowledges the taxpayer's freedom to classify investments but cautions that frequent changes might complicate tax matters, such as the treatment of losses.