Income tax returns (ITR) filing: What is tax evasion and how you can get into trouble
Income tax returns (ITR) filing: What is tax evasion? To ensure that you do not get into trouble inadvertently, you must get to know what this phrase is all about. Paying taxes is the duty of every citizen and under no circumstances should anyone stray from that fact.
If you are investing money and want to claim it against your income to save taxes, you need to be careful because monetary transactions are always under scanner. You must disclose all aspects of your income in a forthright manner. Your effort to evade taxes will lead to unlawful act and you will be punished for it according to law. Let us understand what is tax evasion and how it may affect us.
1. Tax evasion is something which is totally against our national interest, illegal and totally outside the legal framework.
2. This happens when someone takes actions, which help them to reduce their tax liability.
3. This can be by way of taxpayers increasing their deductions or exemptions or reducing their taxable income by not reporting it at all.
4. All these sorts of activities are nothing but evading taxes, illegal means of saving taxes. To deal with such individuals and groups, Income Tax Laws have been made stringent by incorporating many penalty provisions leading to prosecution as well.