What is Tax Evasion ?

            

When a person reduces his total income by making false claims or by withholding the information regarding his real income, so that his tax liability is reduced, is known as tax evasion    
   Tax Evasion is the illegal means or fraudulent techniques to minimize tax liability.
     Tax Evasion is not only illegal but it is also immoral, anti-social and anti-national practice.
   This is illegal way to reduce Tax.
The person who wants to make tax evasion reduces his taxable  income through the following ways:-

1. Unrecorded Sales
2. Claiming bonus expenses, bad debts and losses
3. Claiming bogus expenses as business expenses, for example car expenses, telephone expenses, traveling expenses, medical expenses incurred for self or family may be shown in the account books as business expenses.
4. Non-disclosure of capital gains on asset.
5. Submission of bogus receipts for charitable donations to claim deduction.

Above ways are considered to be tax evasion.