KOMAL (461)PRATIBHA (178)RAHUL (580)ANKIT (546) ADARSH (556)PRERNA (557)

PTP PRESENTATION

Tax evasion is the illegal evasion of taxes by individuals, corporations, and trusts. Tax evasion often entails taxpayers deliberately misrepresenting the true state of their affairs to the tax authorities to reduce their tax liability and includes dishonest tax reporting, such as declaring less income, profits or gains than the amounts actually earned, or overstating deductions .

TAX EVASION

SMUGGLINGEVASION OF WEALTH TAX, CUSTOM DUTY, EXCISE

DUTYSUBMISSION OF FALSE RETURN.SUBMISSION OF FALSE CERTIFICATES TO GET

DEDUCTIONS.CHARGING PERSONAL EXPENSES AS REVENUE

EXPENSE.DUMMY SALARY ENTRIES

WAYS THROUGH WHICH PEOPLE CAN EVADE TAXES:

WHEN QUANTUM

INCOME NOT DISCLOSED 100 -300%

FAILS TO FILE TAX STATEMENT

200 RS. PER DAY

FAILS TO GET AUDITED OR PROVIDE AUDIT REPORT

1.5 LAKHS OR 0.5%WHICHEVER IS LESS

NOT FILING INCOME TAX RETURN

5000RS.

HIGH RATE OF TAXATION: high rate of taxation causes burden on people. So they avoid tax.

FAILURE TO CURB BRIBERY: There should be adequate system to curb corruption. Because these people help taxpayers to avoid tax by taking a portion of the amount evaded.

LACK OF SIMPLIFIED PROCEDURE: tax structure in India complex and people find it difficult to go to different department for a single matter.

FREQUENT CHANGE IN GOVT. AND POLITICAL INSTABILITY : Different govt makes different policy and it becomes difficult to follow.

LIMITATION OF INDIAN TAX STRUCTUREWHICH RESULT IN EVASION:

Tax avoidance is the legal usage of the tax regime in a single territory to one's own advantage to reduce the amount of tax that is payable by means that are within the law.

 Tax avoidance is the use of legal methods to modify an individual's financial situation to lower the amount of income tax owed. This is generally accomplished by claiming the permissible deductions and credits.

TAX AVOIDANCE

HOW PEOPLE AVOID TAX??

TAX HAVENS

TAX HAVENS

SHELL COMPANIES

SHELL COMPANIES

REAL ESTATE

BORROWING

REAL ESTATE BORROWING

AVOIDING CAPITAL

GAINS TAX

AVOIDING CAPITAL GAINS TAX

EVADING THE ESTATE TAX

EVADING THE ESTATE TAX

PAYMENT IN KINDS

PAYMENT IN KINDS

INCORPORATING

INCORPORATING

EQUITY SWAPS

EQUITY SWAPS

SHELL TRUST FUNDS

SHELL TRUST FUNDS

LIFE INSURANCE BORROWING

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NOKIA INDIA-IN A LEGAL MESS?

THE PROBLEM OF ‘WEALTH DRAIN’

QUANTITATIVE RESTRICTIONS ON ROYALTY PAYMENTS

INDO-FINNISH DTAA

WHO WINS?- IT ACT VS DTAA

TIMELINE-DEVELOPMENTS

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