Tax Planning VS. Tax Avoidance VS. Tax Evasion
Every taxpayer always look for difference between tax evasion and tax avoidance as these both terms look similar but can either save taxpayer from tax liability or can impose heavy tax penalties. According to Article 265 of the Constitution of India , tax can only be levied and collected by the authority of law. Collection of tax is the major source of revenue for every country’s government. Government uses this fund for the welfare of the general public at large. In India, government majorly collects two types of taxes i.e. Direct Tax and Indirect Tax. In this blog we will only be discussing about Direct Taxes . Direct tax is a tax that a person pays directly to the government. For example, Income Tax , which is paid directly to the government. These taxes cannot be transferred to any other entity or person. However, the payment of tax becomes burden on tax payers thus, they always look forward to the methods and ways to either escape or red...