CURRENT AFFAIRS

2019

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
India and this country ink pact to Check Tax Evasion, recently.
A
Mexico
B
US
C
Canada
D
Turkey
Explanation: 

Detailed explanation-1: -Tax evasion is a criminal offence in India. Chapter XXII of the Income Tax Act, 1961 states provisions related to the prosecution of such offences, failure to file a timely return, false information, deliberate attempt to evade tax, fabrication of numbers etc. The burden of proof in such cases lies on the accused.

Detailed explanation-2: -However, tax evasion is illegal and Chapter XXII of the Income Tax Act, 1961, is clear about penalties. The Income Tax Act has introduced several penalties for individuals attempting to evade paying income taxes. The penalties for such acts are severe, ranging from 100% to 300% of the tax for undisclosed income.

Detailed explanation-3: -Some of the causes of tax evasion are the existence of tax havens, higher tax rates, lack of integrity on the part of the citizens, presence of informal economy, lack of simplicity in the tax legislations, inefficiency of tax administration etc.

Detailed explanation-4: -As per the tax laws, a minimum three years of imprisonment term which can also get extended up to seven years. However, you cannot be prosecuted in case the amount of tax sought to be avoided does not exceed Rs 10,000.

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