Outlook Money
Tax evasion refers to the deliberate act of not filing taxes, deceiving tax authorities by not revealing income and paying the correct taxes.
Hiding real income, including interest payments, from records will be taken as a deliberate act of tax evasion and will attract penalty and legal action as per the law.
Claiming deductions for invalid business or personal expenses and filing taxes with scant or accurate details will be considered tax evasion.
Tax avoidance involves employing legal methods to reduce tax burdens by leveraging tax laws.
One can maximise deductions allowed under the Income Tax Act for which you are eligible.
One can claim deductions from taxable income by investing in schemes like PPF, NPS, etc.
Accessing tax credits, such as education credits, will further help reduce your overall tax liability.
Compiled BY Himani Verma