Published Paper Details:

Tax evasion and tax avoidance are two practices that have significant effects on the Indian economy. Tax evasion includes engaging in illegal activities to avoid paying taxes in full. Both tax avoidance and tax evasion cause a loss of government revenue, which may restrict governmental spending on infrastructure, social welfare, and development programmers. Tax avoidance refers to the legal exploitation of tax law loopholes to minimize tax liability. Income disparity is also worsened by tax avoidance and evasion, which also damages public trust in the tax system. In the past, the tax evasion and tax avoidance of a large informal sector, poor tax administration, and complicated tax laws have allowed tax evaders to thrive, resulting in significant revenue losses that have made it difficult for the government to fund public services. The Indian government has implemented a number of measures that target tax avoidance and evasion in the current situation. These include improving tax legislation, enhancing tax administration, and utilizing technology to increase compliance and transparency. Tax evasion is being battled and a tax system that is more equitable is being promoted through initiatives such as demonetization, the implementation of the Goods and Services Tax (GST), and the creation of the Direct Tax Code. This paper explores multi dimensions of tax avoidance and tax evasion in the view of current government laws, policies and preventive measures, how it has affected the Indian economy and the judicial interpretation of tax evasion and avoidance.