What is Tax Evasion: India is a very developing country, new industries, and new businesses are constantly being established here. Business is growing rapidly in India, there are all types of businesses from small to big. Even after doing so much business, the government is not getting tax properly. Because there are lots of businesses in India which do tax scam and tax evasion. There are many ways in which tax can be avoided. There are several methods that people use to avoid paying taxes in India like a false tax return, fake documents, bribery, false deductions, and combining personal expenses in business expenses.
What is Tax Evasion – Taxkundali
Tax evasion is an illegal operation in which an individual or company evades paying the tax liability. it includes False income, no proof of cash transaction, hiding income, and more. Tax evasion is a serious crime that comes under illegal charges and substantial fines. Not paying tax causes a lot of damage to both the government and society, the main source of our government’s revenue is tax and the country is developing with this tax.
Understanding Tax Evasion
Tax fraud involves the intentional falsification or lack of data on a tax return. There are many tricks to avoid paying tax and some tax evasion techniques that become very difficult to trace. if you avoid paying tax it may harm your business and also the business owner and big penalties and some severe cases you will be behind the bar for years. There are two perspectives of not paying taxes when they are due. The first is tax avoidance and another tax evasion. The difference is that tax avoidance is finding a loophole and taking some time to pay tax for illegal tax saving, and tax evasion is not paying tax while the tax is due, and it is illegal.
Here are Some Following ways of Tax evasion:-
1. False Records – it is the most common and simplest way to evade tax. they maintain their accounts with many false transactions and wrong information, they intentionally make those entries to fool our tax department and government.
2. Smuggling – When certain goods shift from one location to another, across international or state borders, a tax or charge may be payable to move the goods. However, some businesses or individuals may move these goods in secret ways to avoid paying those charges that evade the tax.
3. Bribery – There may be a situation where a certain amount is due in taxes which the individual may not be willing to pay. In such a case he or she may offer a bribe to executives and do their settlements and vanish those records.
4. Submitting false tax returns – when an individual files taxes, they may submit false or incorrect data to reduce the tax that they are supposed to pay. This is also tax evasion for the complete information is not given and they may be paying smaller than what they should.
5. Compensating employees in cash – Sometimes a company owner decides to give Compensating to their employees in cash because cash transaction records are hard to track. Sometimes a business owner makes some fake expense entries in their records to avoid tax.
Overall Tax Evasion is a crime that harms our country every person who is under the tax pay liabilities then they will pay the tax. It makes our country better. If You want any tax-related information and tax consultancy then Taxkundali is a better choice. We are The Top Tax Consultant in Jaipur, Rajasthan, we have a team of tax experts for your tax-related problems. our team gives you the best possible consultancy according to your business.