Evasion of direct taxes and role of central board of direct tax CBDT in India an analytical study

Abstract

Taxation system is integral part in economic, infrastructural and other developments of any Nation, as it works like fuel for economy of any Nation. But generally the public at large underrate the importance of Income Taxation System, and are not taking it as self-responsibility towards nation. In order to abstain or omit from the tax responsibility, people got involved in immoral or illegal activities, barred under law of Land, these techniques, activities used for tax delinquently or evading money are known as Tax Evasion . Evasion of Direct Tax newlineis criminal offence and a social and moral evil which affects the prosperity, growth and development of the Nation. In India under tax laws the Central Board of Direct Taxes (CBT), is authority to deal with tax administration, and make policies and efforts to curb the problem of Tax Evasion. In regular practice CBDT also endeavour to make taxation system easier and simplified, to facilitate and motivate the general people, for filling income tax. With advancement the Income Tax Department has also launched their web-portal to file e-return or e-filling . With advancement of technology the taxation system has also improved in country and getting easy for governance. Each and every tax assessee has been allocated a PAN, which is being used as mandatory document for transactions; it helps to curb the tax evasion. Despite the advanced technology, methodology and advancement in tax system, still the India is facing problem of tax Evasion, due to flaws, complexity and loop-holes in Tax Law. newline newline