A Study into the Nature and Consequences of Tax Evasion with Special Reference to India

Prof. M. M. Sury

doi:https://doi.org/10.17492/vision.v2i1.6593

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A Study into the Nature and Consequences of Tax Evasion with Special Reference to India

M. M. Sury

Vol 2, Issue 1, January - June 2015 | Pages: 1-34 | Research Paper

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https://doi.org/10.17492/vision.v2i1.6593

Published Online: June 21, 2015

Author Details ( * ) denotes Corresponding author

1. * M. M. Sury, Formerly Economic Advisor , Delhi State Finance Commission, Delhi, India (mmsury43@gmail.com)

Tax evasion is a serious problem in developing countries which are in the process of evolving their tax systems. The major causes of tax evasion include high level of tax rates, apathy towards government and its laws, and lenient penal action. Widespread tax evasion is a perennial problem of the Indian tax system. The paper looks at the history of taxation law amendments in India which is essentially a history of plugging loopholes, as and when discovered, to prevent leakages of revenue. To fight the evil of black money and tax evasion in India, some of the important measures taken include reduction in tax rates, minimisation of controls and licences, regulation of donations to political parties, creating confidence among small taxpayers, substitution of sales tax by excise duty, vigorous prosecution policy and compulsory maintenance of accounts.

Keywords

Tax evasion, Transfer pricing, Tax amnesties, Penalties, Income tax

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