What is Tax Evasion?

Tax evasion means doing an illegal act to avoid paying taxes by unreported income, inflating deductions, which can lead to severe penalties and are subject to serious crimes under the law. These tax evasions are illegal and come under Chapter XXII of the Income Tax Act, 1961, with many penalties. 

Common Methods of Tax Evasion and Penalties in Income Tax? 

Here are some of the common methods of tax evasion under the Income Tax Act of 1961: 

• Not filing the ITR under the specific due date. 
• Hiding the income for Income tax evasion can result in a 200% penalty of the Income tax evaded.
•  If you do not get your accounts audited, then the Income Tax Department can impose a penalty. 
• If an individual failed to collect the Tax deduction and collection account number, then he or she will be liable to pay a penalty of 10,000 INR. 
• For providing an incorrect PAN, you have to pay a penalty of 10,000 INR. 
• If you do not provide your PAN, then the deductor will deduct a 20% TDS.