5.3. TAX EVASION
Any illegal method which leads to reduction of tax liability is known as Tax Evasion. The Tax Evasion is resorted to by applying following dishonest means :
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Concealing the Income
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Claiming excessive expenditure
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Falsification of accounts.
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Willful violence of Rules
E.g. Claiming depreciation where no asset exist in the Business or claiming depreciation on the assets which is used for residential purposes. It Is basically a fraudulent method of reduction in tax liability. |
