Main Article Content
Abstract
The Indian government is more concerned about the prevalence of the tax evasion and black money and various commissions are formed for controlling it but results are not so impressive. Thus, the paper suggests that recommendations of the commissions or laws should be implemented correctly for reducing bad effects of tax evasion and black money and need of separate direct tax code. The study shows that there is a significant positive impact of taxation on the economic development of India with Income tax being least effective. Corporation tax apart from other taxes was found to be one of most productive in such a shorter extent of time since its obligation. To control the generation of black money there should be a strong and appropriate legislative framework. It is evident from the study that government of India already introduced various commissions for estimating black economy but estimation reports are not same. This study also investigated the overview of the opinion of tax professionals regarding the tax evasion in India, delineating the number of factors responsive for tax evasion and examining the possible remedies to reduce the problem of tax evasion. Tax evasion in India is a serious affair and for any defaulters or fraudsters, the Income-Tax Act provides for adequate repercussions. The study has made an attempt to assess the overall profile of tax evasion and black money in India, particularly in terms of causes, impacts and government initiatives. Tax evasion occurs when individuals deliberately fail to comply with their tax obligation. The resulting tax revenue loss may cause serious damage to the proper functioning of the public sector, threatening its capacity to finance its basic expenses. The results indicate that tax evasion and black money has been expanding very rapidly in India as well as in developing countries