Published Paper Details:

In a welfare state, the government takes primary responsibility for the welfare of its citizens as in matter of health care, education, employment, infrastructure, social security and other development needs. To facilitate these, government needs revenue. The taxation is the primary source of revenue to the government for incurring such public welfare expenditure. In other words, government is taking tax from public through its one hand and through another hand; it incurs welfare expenditure for public at large. However no one enjoys handing over his hard-earned money to the government to pay taxes. Thus taxes are compulsory or enforced contribution to the government revenue by public government may levy taxes on income, business profits or wealth or add it to the cost of some goods, services and transactions. There are some of unlawful and unacceptable practices which reduce the revenue collection for government followed by the tax payer's like tax evasion and avoidance. This paper focus on concept of tax evasion, reason for tax evasion, different ways of tax evasion and impact on Indian economy.