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Abstract

An attempt has been made in this thesis to study the various problems arising out of tax avoidance and tax evasion; their consequences and effects on the economy of the State and to suggest ways and means to discourage it The first Chapter outlines the background in which tax crimes are committed in India today. The second Chapter is devoted to a brief description of the origin of direct taxes in India and discusses the working of the Income Tax machinery. A brief examination of the various practices adopted by ingeneous taxpayers to defeat the provisions of law in order to escape taxes has been made in Chapter three. The study of tax avoidance devices adopted by the Hindu undivided family is given particular attention. A detailed analysis of the judicial attitude to tax avoidance in India and Britain has been made in Chapter four. In the fifth Chapter an appraisal of the nature and extent of tax evasion has been made. The defects in legislation and administration have also been pointed out. In the sixth and seventh Chapters legislative provisions relating to penalties and prosecutions for tax avoidance and tax evasion have been discussed. The provisions relating to the application of the common law doctrine of mens rea in administrative and criminal sanction have been discussed and compared with the situation in other countries. A judicial review of the provisions relating to the nature of penalty proceedings, burden of proof and the constitutionality of fiscal legislation has been made in Chapter eight. This is followed by concluding remarks in Chapter nine.