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ACKNOWLEDGEMENT:-

This assignment would not have been imaginable without the kind support and
help of many persons and most certainly this institution. I would like to extend my
heartfelt thanks to all of them.

I am highly obligated to Mr.Bineet Kedia for his guidance and supervision as well
as for providing necessary information regarding the project and also for the
support in finalizing the project.

I would like to express my gratefulness towards my parents for their kind co-
operation and reassurance which certainly gave me the push when I needed it the
most.
- Ankit Nande

ABSTRACT:-
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Taxes are the major source of revenue to the government. Tax evasion is a serious threat which
hampers the economic development to a greater extent as majority of the welfare measures
undertaken by the government are funded by the taxes collected. Tax evasion is a scenario where
people evade tax through illegal and fraudulent means. It might be in the form of understating
profits, gains and turnover and overstating losses and expenses, non payment of taxes the tax
evaders find every opportunity to evade tax. This results in a huge amount of revenue loss to the
government so that the country faces economic stagnation. The economic scenario is such that
these tax evaders can even buy the government with volumes of black money. Tax evasion also
leads to economic inequality where the rich becomes richer and the poor becomes poorer. This is
one of the major reasons for India’s poor economic growth since independence despite being
very rich in natural and human resources. This review paper focuses on highlighting the causes
and ill effects of tax evasion in the overall development of the Indian economy and also suggests
a few measures to resolve this issue and there by paving way for the growth of the country.

T ax is a major source of government revenue and it contributes for the overall development and
prosperity of a country. Raising government revenue in terms of income tax, custom duty, excise
duty, entertainment tax, VAT, land revenue tax etc. from various sectors in order to initiate
development and welfare programmes that are meant to improve the company’s situation. But
the country has been facing a massive problem with tax evasion. People who should be paying
taxes have found ways not to pay them and, as a result, it may be said that the income of the
country has been suffering. India is facing major problems like Tax Evasion, Black money,
existence of parallel economy show that Indian taxation system requires some major reforms in
the future ahead to address all this problems. In this backdrop the present paper explores the tax
evasion concepts and examine amount of tax evasion in India. For this purpose the required data
have been collected from secondary sources.

KEYWORDS: Tax Evasion, Black Money, Indian Economy, Corruption.

INTRODUCTION:-
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Taxes in India are levied by the Central Government and the state governments. Some minor
taxes are also levied by the local authorities such as the Municipality.

The authority to levy a tax is derived from the Constitution of India which allocates the power to
levy various taxes between the Central and the State. An important restriction on this power is
Article 265 of the Constitution which states that "No tax shall be levied or collected except by
the authority of law"1. Therefore, each tax levied or collected has to be backed by an
accompanying law, passed either by the Parliament or the State Legislature.

WHAT IS TAX EVASION?

Tax evasion is when the payment of tax is avoided through illegal means or fraud. It is
undertaken by employing unfair means, and it is treated as unlawful and the defaulter may be
punished. Tax evasion is possible only after the liability to pay has already arisen. Tax evasion is
the way people evade tax by illegal and unfair means. They may claim lesser profit, gains or
turnover than actual. Even if there is huge amount of tax to be paid, evaders get refund by
making misrepresentations before tax authorities. Huge amount of revenue is lost through this
way for government so that we cannot climb from economic stagnation. Most of the welfare
activities for poor are put on hold due to lack of money while some people who can buy even the
government with black money are growing daily.

TAX AVOIDANCE:-

Tax avoidance is the legitimate minimizing of taxes, using methods included in the tax
code. Businesses avoid taxes by taking all legitimate deductions and by sheltering income from
taxes by setting up employee retirement plans and other means, all legal and under the Internal
Revenue Code or state tax codes.2

ACTIVITIES WHICH CONSTITUTE TAX EVASION:-

1
Mahabir Prashad, Indian Constitutional Law (2014).
2
Jean murray, What Is the Difference Between Tax Avoidance and Tax Evasion? (2019),
https://www.thebalancesmb.com/tax-avoidance-vs-evasion-397671.
 Page |4

The punishment and penalties applicable to people guilty of indulging in tax evasion depends on
the type of offence3. The following are key activities that are considered to be tax evasion
according to the Income Tax Act, 1961:

 Not Filing Income Tax Returns: One of the most common forms of tax evasion is not
filing income tax returns as required by Section 139 of the Income Tax Act. In most
cases, person trying to evade taxes is scrutinized to see if the non-filing or partial filing of
income tax returns is accidental or deliberate. If they are deemed to be committing fraud,
they are subject to harsh punishment. Otherwise, they need to file taxes correctly after
paying the necessary penalties.

 Not providing or misquoting PAN: If an employee does not quote PAN to the employer,
the employer is required to deduct 20% TDS from the former’s salary else, 10% TDS is
deducted. However, quoting the wrong PAN or not providing PAN to appropriate
authorities can attract a heavy penalty. This is because it is labelled as a form of identity
theft.

 Concealing Income to Evade Tax: Some taxpayers try to conceal their actual income so
that their tax liability is calculated to be lower than the actual. This is another common
form of tax evasion. They can do so by associating their assets with a person other than
themselves or a different name/PAN. Another common method of concealing income is
accepting cash to avoid TDS deduction or under reporting transactions made by the
business/individual4.

 Not Complying with Income Tax Notice: Tax authorities such as the Assessing Officers
review income tax returns and may issue a notice if they notice a discrepancy in the
income, tax and or any other details provided. In this case, not complying with a notice
issued by the Income Tax department is considered to be a form of tax evasion5.

 Not maintaining compliant Books and accounts: Maintenance of complaint books and
accounts are specified u/s 44AA of the Income Tax Act, 1962. Failure to maintain
3
Tax Evasion in India, (2019), https://www.paisabazaar.com/tax/tax-evasion/.
4
Dr. V. K. Singhania, Students Guide To Income Tax (including Service Tax, Vat) (2009).
5
Shubham Sinha, The Income Tax Law of India (2015).
 Page |5

compliant books may also be considered as an attempt to evade taxes and accordingly
penalties may be imposed by the assessing officer in accordance with the Income Tax
Act, 1961.

CONSEQUENCES OF TAX EVASION:-

People have observed the nexus between tax evasion and black money and its distortion of the
redistributive role of tax policy in India’s Seventh Five-Year Plan. A reduction in the scale of
black money generation can improve the distribution of income and wealth after taxation. In
addition, reduction in the extent of tax evasion can generate a high volume of tax revenue and
more public expenditure will benefit the poorer section of the population of the society (Planning
Commission, 1985-90). The success of an inclusive growth strategy highly depends on the
capacity of society to eradicate the evils of corruption and black money from its very
foundations. Black money in every sphere of social, economic, and political space of the country
has a debilitating effect on the institutions of governance and conduct of public policy in the
country. Governance failure adversely affects the interests of vulnerable and disadvantageous
sections of society. The effects of tax evasion resulting in black money on Indian economy are
indeed disastrous6. A few consequences/effects are as follows:

 Tax evasion resulting in black money prevents the resource mobilization efforts of the
Government. Shortage of funds distorts implementation of developmental plans and
forces the Government to resort to deficit financing in case public expenditure is
inelastic.

 Tax evasion interferes with the declared economic policies of the government by
distorting saving/investment patterns and availability of resources for various sectors of
the economy.

 Tax evasion undermines the equity attribute of the tax system. Honest taxpayers willingly
bear disproportionate tax burden, feel demoralized and lured to join the tax evaders’
camp.

6
Pradip Kumar Das, IMPACT OF TAX EVASION ON INDIAN ECONOMY (Volume 7 ed. 2018), International
Journal of Current Advanced Research.
 Page |6

 Tax evasion and black money encourage concentration of economic power in the hands
of undeserving groups in the country which, in turn, is a threatening to the economy in its
way.

 Evasion of tax consumes time and energy of tax administration to disentangle the
intricate manipulations of tax dodgers.

 Unsocial activities like bribery, intimidation, blackmailing, tampering with official

records, submitting fake documents, etc. are all abuses degrading social and moral values
that ultimately go with tax evasion.

IMPACT OF TAX EVASION ON INDIAN ECONOMY:-

India has been facing serious problems like tax evasion and thereby establishment of black
money and the existence of parallel economy evidencing that the Indian socio-economic system
requires some major reforms in future to address all these problems 7. Tax evasion has serious
effects on the entire economic system of India. Some of the important impacts are:

Less Tax for the Government- Often, the Indian Government has failed to collect the estimated
amount of tax from the Indians. As a result, credit has to go to the black money driven
underground economy showing impact of illicit wealth on GDP8.

Creation/Growth of Mass Poverty- The misdistribution of wealth and income in India has
seriously affected the growth of underground economy. The common people get affected in
many ways. The tax evaders keep the money away from the deserved. Recovery of black money
in the tax havens and use thereof by the Indian Government can pay off all the outstanding
liabilities of the country and the money will still be left for spending9.

Uncontrollable Inflation- The direct effect of tax evasion is the loss of revenue causing the
increase prices of commodities to a level beyond normal. Consequently, the people having more

7
An Insight into Black Money and Tax Evasion – Indian Context, , https://researchleap.com/insight-black-money-
tax-evasion-indian-context/.
8
Agnar Sandmo, The Theory of Tax Evasion: A Retrospective View (58 ed.), National Tax Journal.
9
https://www.business-standard.com/article/economy-policy/tax-evasion-may-derail-india-s-budget-deficit-goal-as-
demand-wanes-119081900107_1.html.
 Page |7

money offer more money on specific items. Black money upsets the Government’s move
resulting in some sorts of pressure on the economy.

Investment on Gold, Stones and Jewelers- People willing to convert black money into white
money to evade tax are largely investing in precious metals like gold and other jewelers with the
belief that investment in gold is difficult to trace. Gold can be bought and converted back to
money any time with less effort and time. Thus, flow of underground money has caused Indian
economy to stall on its growth. Estimation says that if all the money in the underground economy
could be diverted to our main economy, Indian economy would grow more.

Transfer of Indian Funds Abroad to Safe Havens- Black money generated in India is kept in
foreign tax havens through secret channels mostly with the help of two important methods,
under-invoicing of exports and over-invoicing of imports.

Corruption- Corruption creates tax evasion and the resultant black money in the economy
which can also be a result of the growing underground market. Black money holders bribe
different parties to reach their desired goals and are able to get what they want and others are
pushed down the stack10.

Effect on GDP of the country due to less tax collection- Black income has been causing
underestimation of GDP in India. The direct effect of black money due to tax evasion is the loss
of revenue to the state exchequer.

Higher tax rate on existing taxpayers-Owing to tax evasion by mostly the rich, the
Government is forced to enhance the tax rates every assessment year for increasing its revenue
resulting in high tax burden of those paying taxes promptly.

IMPACT OF TAX EVASION ON GOVERNMENT BUDGET:-

Taxes are the major source of revenue of India government. Tax evasion causes economic
inequality that is how some people are getting richer and others are getting poorer. Many reform

10
nila rajesh, Tax Evasion in India - Ways, Effect and Control , https://www.caclubindia.com/articles/tax-evasion-in-
india-ways-effect-and-control-20851.asp.
 Page |8

measures and initiatives of government have to be set aside and welfare activities are getting
affected. Black money causes inflation and value erosion11.

As inequity and inefficiency lead to lower revenue intake for government, its functional capacity,
efficiency and effectiveness suffer because of tax evasion. Capacity suffers due to lower
availability of resources. The result could very well be an increase in tax rates, or the imposition
of distortive taxes, thereby initiating a vicious cycle of inequity and inefficiency. Tax evasion has
been causing reduction in country’s economic growth. The direct effect of tax evasion is the loss
of revenue, and increase in inflation.

It reduces government tax revenue.If it’s very widespread, this could impact the ability of the
government to pay its expenses, which might include social services, infrastructure, the military
etc. If the government can’t pay its expenses, it either must cut spending, go into debt, or
increase taxes. One person’s avoiding taxes is not going to do all that, obviously, but widespread
tax evasion could12. Tax evasion diminish the earnings of a state. The consequences are :

1. The government could spend less,

2. Had to borrow more money or

3. Hire more people to combat the tax evasion.

A large underground economy and growth of black income lead to under-estimation of the true
size and incorrect picture of the economy by the officially complied national income data.Since
unreported economy is apparently excluded from the official records of the Gross National
Product, the estimates of savings and consumption of nations to the national income and
measurement of other macroeconomic variables would be biased and misleading for accurate
policy making and planning considerations 13. Black money is largely attributed to tax evasion. Its
direct impact is the loss of the Government revenue. Since the Government fails to get sufficient
tax revenue due to large-scale tax evasion, it is forced to resort to high taxation and deficit
financing which again carry their ill-economic effects. When the Government resorts to
progressive direct taxation to maintain equity in the distribution of the tax burden, the tax
evasion and growth of black money affect the very concept of social justice by not allowing the

11
V. Kalpana, Tax Evasion - A Major Threat to Economic Development and Growth – Causes and
Remedies (Volume 4 ed. 2015), International Journal of Scientific Engineering and Research (IJSER) .
12
Rohit Shindhe, , https://www.quora.com/Can-anyone-explain-fiscal-deficit-How-is-it-measured-and-how-does-it-
affect-a-countrys-economy.
13
Vishal Tiwari, , https://www.quora.com/What-is-black-money-and-its-challenges-in-the-Indian-society.
 Page |9

desirable reduction in inequalities of incomes. Again, when underground activities like

smuggling etc. could not be taxed, the Government will impose higher taxes on officially
sanctioned activities. Further, the tax evasion will also equally enjoy the public services without
paying the due contribution; to that extent also social enquiry is undermined. The honest have to
bear high tax burden to make up for the deficit in revenue caused by the tax evasion of black
money makers.

The government will increasingly borrow more, asking the federal bank to lend it money. It
might even turn to private players for money. Selling bonds will increase the national debt, this
has a high opportunity cost because it requires future generations to pay higher taxes. In the
future the govt may have to increase taxes or cut spending in order to reduce the deficit. This
may cause reduced incentives to work. If the govt sells more bonds this is likely to cause interest
rates to increase. This is because they will need to increase interest rates in order to attract
investors to buy the extra debt. If govt interest rates increase this will push up other interest rates
as well. In extreme circumstances the govt may increase the money supply to pay the debt.

When there is a need for government to borrow it leads to higher interest rates that shall oppress
the stimulus to spend. During a budget deficit funds need to be accumulated from public(through
issue of bonds) or overseas borrowing.(Government bond:It is a bond issued by national
government with a promise to pay back interest payments along with repaying original value on
the date of maturity). This definitely increases the interest rates in the market because
government borrowing creates higher demand for credit in market thereby decreasing the
aggregate demand14.

When government implements an expansionary( spending more than tax revenue) policy
(generally during recession), it clearly increases aggregate demand in the country and thereby
decreasing the net exports which has a mitigating effect on national output and income. When
government borrowing increases interest rates, it attracts foreign capital from foreign investors 15.
That is because the bonds that are being issued promise a higher rate of return. For a foreign
company to purchase the bonds, they must possess the national currency and when foreign
capital flows into the country there is an increase in demand for nation's currency. This increase
causes country's currency to appreciate and when this happens, the goods and services of the
country cost more to the foreigners than before and foreign goods and services cost us less than
before.

High fiscal deficit is a bad thing, because it affects the general economic activity, currency
exchange rate, employment etc. An increased fiscal deficit implies that the government needs to
borrow more money from the public. This creates a demand for more money among the public,
and hence results in lesser money being available to give to the industries. This results in high
rates of interests for the industries, which causes a hike in the rates of production and

14
Tejawam Pettinger, Economic effects of a budget deficit, https://www.economicshelp.org/macroeconomics/fiscal-
policy/effects-budget-deficit/.
15
Singh, Jaspal& Sharma, Poonam , 2007 ,”Tax Professionals Perception of the Income Tax System of India an
Empirical Evidence”, The ICFAI Journal of Public Finance, Volume 5, No. 1, pp. 45-56.
 P a g e | 10

operations.The businesses become less profitable, and the business people might opt out of their
businesses or scale down, resulting in unemployment16.

Often, the government needs to borrow money from foreign sources as well. This increases the
supply of foreign currency, resulting in an increase in demand for Indian currency in the market.
This is however good for the imports business, as what could be bought at higher rates could
now be bought at cheaper rates.So, the exports decrease, as the imports increase, and hence the
trade balance is disturbed.

The government will have to borrow from the private sector. When the government borrows, it
offers to pay an interest payment to those who buy the bonds. The interest rate attracts investors
to lend the government money. A budget deficit implies lower taxes and increased Government
spending, this will increase aggregate demand and this may cause higher real GDP and
inflation17. A government may run a budget deficit to finance infrastructure investment. This
could include building new roads, railways, more housing and improved telecommunications.
This public sector investment can help increase long-run productive capacity and enable a higher
rate of economic growth. If growth does improve, then the borrowing can pay for itself. For
example, many public sector investment projects can have a rate of return higher than the cost of
borrowing. In the future, the government may have to increase taxes or cut spending in order to
reduce the deficit. After 2010, the coalition government implemented a period of austerity. This
involved cutting public sector spending; in particular, areas such as local government, public
sector pay saw cuts in government spending – affecting public services and public pay. If the
government borrows more, this can cause interest rates to increase. This is because they will
need to increase interest rates in order to attract investors to buy the extra debt 18. Increased
government borrowing may cause a decrease in the size of the private sector. The government
borrow by selling bonds to the private sector. Therefore, if the private sector (banks/private
individuals) buy government bonds, they have less money to invest in private sector projects. If
there is crowding out, government borrowing will not cause higher aggregate demand.

Deficit spending usually stimulates the economy - it puts people to work and if spent wisely on
needed things like roads, railways, schools, etc should result in higher future tax revenues.
Deficit spending when the economy is already running at capacity can drive prices up,i.e.
inflation. If the deficit in any one year is very large compared to the size of the economy, or the
accumulated debt over multiples gets too high, potential lenders will treat the country as riskier -
less likely to be able to pay their debts. So they will demand higher interest rates on loans, which
reduces the amount of money available to the government for productive spending.

METHODS TO CURB TAX EVASION:-

India is a country wherein excellent and brilliant laws are framed with respect to all disciplines.
Yet the country suffers from severe law and order issues due to the poor execution of such laws.
16
wikipedia, “Taxation in India,” 2016
17
Arora R.S. & Rani Vaneeta , 2010,”Tax evasion and corruption in the Indian Income Tax System : causes and
Remedies” , Indian journal of Finance, Vol. 4,pp.30-36
18
G. Francis, , https://www.quora.com/What-are-the-effects-of-tax-evasion-on-society-and-the-government.
 P a g e | 11

Tax laws are no exemption from this drawback. The government, in spite of making its best
efforts to recover taxes, is still not able to succeed in its mission completely. The following table
shows the importance of tax as a major source of revenue as it is used for the maintenance and
development of the major sectors of the country.

In spite of the importance majority of the population of the country is still negligent about
payment of taxes of proper filing of IT returns19. The following measures are suggested to the
government as well as the taxpayers to overcome this issue:

1) Reduction of tax rates by the government: This might bring a positive response as it creates
a sense of feeling in the public that the government is really striving hard to reduce their tax
burden.

2) Simplified Tax Laws and procedures: The Indian Tax System has been bombarded with
many complex and cumbersome procedures as compared with the tax system of the world
economies. This issue must be resolved as early as possible as it invokes a positive response.
However, the e-filing system and self assessment scheme is definitely a boon for tax payers.

3) Well organised and a more Autonomous Tax Administration Structure: Not only the tax
system, but also its administration is complex as the tax authorities are widespread across the
States wherein the system of levy, collection and the rates of taxes vary in accordance to the Tax
Laws of the concerned State. However, this issue, to a greater extent is resolved with respect to
indirect taxes with the introduction of GST20.

4) Increased awareness among the taxpayers: Proper measures must be ensured at various
levels to educate the taxpayers about the importance of tax as a major source of revenue to the
government through various seminars and conferences through media.

5) Corruption free officials and taxpayers: People also resort to bribery to evade tax i.e they
bribe the tax officials to reduce or evade tax completely. This practice must be stopped and both
the parties must not resort to this illegal practice.

6) Stronger penalties for non compliance: The penalties for non compliance of the tax
procedures must be made stronger in addition to which it must also be ensured that these
penalties are properly implemented.

7) Sense of responsibility among the taxpayers: The taxpayers must also realize that
compliance with the tax procedures are crucial for the overall development of the economy and
must develop a sense of responsibility that the non compliance of these procedures are
detrimental to their individual growth as well. Social conscience needs to be aroused amongst

19
V. Kalpana ,2015 -Tax Evasion - A Major Threat to Economic Development and Growth – Causes and Remedies,
(IJSER) www.ijser.in,Volume 5, No. 1, pp. 45- 56.
20
Dr. Devarajappa, S. 2017.Tax Evasion in India: A Study of its Impact on the Revenue of the Government, EPRA
International Journal of Economics and Business Review, 5 (9).
 P a g e | 12

people against tax evasion, for attaching social stigma for tax evaders and to work as sentinels
for identifying black marketers and tax dodgers

8) Use of Media: Tax laws should permit wide publicity through media regarding persons found
guilty of tax evasion irrespective of their power, position and status in the society21.

CONCLUSION:-

Having been aware of the ill effects of tax evasion, it becomes each one of our responsibility to
support the government by complying with the tax procedures and pay taxes promptly. As it is
rightly said that every drop of water makes an ocean, it can also be said that our small
contribution makes a huge difference in the growth of the economy. Instead of expecting for
change to happen, let us be the change agents who can bring in a drastic development by just
fulfilling our responsibilities promptly. If each one of us speaks the same language, then there
will be least or no scope for us to be exploited by any institution or authority. So let us fulfill our
duties first and claim our rights next.

Further there is also a need to educate the people about Indian Tax law and create such an
environment in which they pay their due taxes, do not evade the tax and feel proud in
discharging their duty to pay the taxes.

Tax evasion is a curse to any country and grows underground market. Needless to mention that
existence of tax evasion has a significant impact on social, economic and political levels of the
Indians having significant impact on every organization of governance and conduct of public
policy in our country. It is not possible to curb, control and finally prevent tax evasion in near
future as well as repatriation of black money rather, it may be possible if comprehensive mix of
well defined strategies and policies is pursued with patience and perseverance by the Central and
State Governments and put into practice in co-ordinate manner. It is a big challenge for our
Government to properly form committees and run them in a very efficient and effective manner.

A multi-pronged strategy is essential to deal with the issue of tax evasion and generation of black
money. The factors leading to tax evasion in India along with the various measures attempted to
controvert it make it clear that there is no single remedy to curb, control, and finally prevent it.
The effect of tax evasion on the economy of the country cannot be described as calamitous. Now,
India is seriously handicapped in its endeavor to march forward. The resources required for
development are not adequately appearing for the reasons that business is carried on in the
‘black’. Tax evasion is like a cancerous growth in the country’s economy which, if not checked
timely will surely guide to its ruination.

21
Sarkar, Sukanta. 2010. The Parallel Economy in India: Causes, Impacts & Government Initiatives, 11-12(1-2):
124-134.
 P a g e | 13

BIBLIOGRAPHY:-

[1] Mahabir Prashad, Indian Constitutional Law (2014).

[2] Jean murray, What Is the Difference Between Tax Avoidance and Tax Evasion? (2019),
https://www.thebalancesmb.com/tax-avoidance-vs-evasion-397671.

[3] Tax Evasion in India, (2019), https://www.paisabazaar.com/tax/tax-evasion/.

[4] Dr. V. K. Singhania, Students Guide To Income Tax (including Service Tax, Vat) (2009)

[5] Shubham Sinha, The Income Tax Law of India (2015).

[6] Pradip Kumar Das (2018) 'Impact of Tax Evasion on Indian Economy', International Journal
of Current Advanced Research, 07(8), pp. 15207-15215.

[7] Agnar Sandmo, The Theory of Tax Evasion: A Retrospective View (58 ed.), National Tax
Journal.
 P a g e | 14

[8] An Insight into Black Money and Tax Evasion – Indian Context,
https://researchleap.com/insight-black-money-tax-evasion-indian-context/.

[9] https://www.business-standard.com/article/economy-policy/tax-evasion-may-derail-india-s-
budget-deficit-goal-as-demand-wanes-119081900107_1.html.

[10]Nila Rajesh, Tax Evasion in India - Ways, Effect and Control ,

https://www.caclubindia.com/articles/tax-evasion-in-india-ways-effect-and-control-20851.asp.

[11] V. Kalpana, Tax Evasion - A Major Threat to Economic Development and Growth – Causes
and Remedies (Volume 4 ed. 2015), International Journal of Scientific Engineering and Research
(IJSER) .

[12] Rohit Shindhe, , https://www.quora.com/Can-anyone-explain-fiscal-deficit-How-is-it-

measured-and-how-does-it-affect-a-countrys-economy.

[13] Vishal Tiwari, , https://www.quora.com/What-is-black-money-and-its-challenges-in-the-

Indian-society.

[14] Tejawam Pettinger, Economic effects of a budget deficit,

https://www.economicshelp.org/macroeconomics/fiscal-policy/effects-budget-deficit/.

[15]Singh, Jaspal& Sharma, Poonam , 2007 ,”Tax Professionals Perception of the Income Tax
System of India an Empirical Evidence”, The ICFAI Journal of Public Finance, Volume 5, No. 1,
pp. 45-56.

[16] wikipedia, “Taxation in India,” 2016

[17] Arora R.S. & Rani Vaneeta , 2010,”Tax evasion and corruption in the Indian Income Tax
System : causes and Remedies” , Indian journal of Finance, Vol. 4,pp.30-36
 P a g e | 15

[18] G. Francis, , https://www.quora.com/What-are-the-effects-of-tax-evasion-on-society-and-

the-government.

[19] Dr. Devarajappa, S. 2017.Tax Evasion in India: A Study of its Impact on the Revenue of the
Government, EPRA International Journal of Economics and Business Review, 5 (9).

[20] Sarkar, Sukanta. 2010. The Parallel Economy in India: Causes, Impacts & Government
Initiatives, 11-12(1-2): 124-134.

[22] , https://www.caclubindia.com/articles/tax-evasion-in-india-ways-effect-and-control-
20851.asp.
P a g e | 16