The way of tax liability by taking full advantage provided by the Act is _______________.1 pointTax managementTax AvoidanceTax PlanningTax Evasion

The correct answer is Tax Planning.

Step 1: Understand the question. The question is asking for the term that describes the method of managing tax liability by fully utilizing the provisions of the Act.

Step 2: Analyze the options.

• Tax management: This is a broad term that includes all aspects of paying taxes, including planning, avoidance, and evasion. It's not specific enough for this question.

• Tax Avoidance: This is the use of legal methods to reduce the amount of tax that one owes. It's not the best answer because it doesn't necessarily involve using the provisions of the Act.

• Tax Planning: This is the analysis of a financial situation or plan from a tax perspective. It is an essential part of a financial plan, as reduction of tax liability and maximizing the ability to contribute to retirement plans are both crucial for success. This involves using the provisions of the Act to reduce tax liability.

• Tax Evasion: This is the illegal practice of not paying taxes, by not reporting income, reporting expenses not legally allowed, or by not paying taxes owed. This is not the correct answer because it's illegal and doesn't involve using the provisions of the Act.

Step 3: Choose the best answer. Based on the