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How common is tax evasion?

In the 906 cases of tax evasion against exporters, between July 2017 to August 2020, the quantum of tax evasion was Rs 2,551.15 crore. India suffers from a very low tax base. The percentage of the Indian population which pays income tax is just 1%. Tax evasion is the main cause behind the problem of a very low tax base. There are many cases of tax evasion even in cases of indirect taxes like GST. You can read about the Black Money, Tax-Evasion & Tax-Avoidance in the given link.

Further readings:

  1. Double Taxation Avoidance Agreements (DTAA) – Countries Involved, Income Tax Provisions
  2. UPSC Mains General Studies Paper-III Strategy, Syllabus & Structure

Related Links

Value Added Tax (Subsumed by GST) – Overview, Differences with Income Tax, Limitations

General Anti-Avoidance Rule (GAAR) – Anti Tax Avoidance Law in India

Previous Years Economics Mains Questions for UPSC General Studies Paper – 3

Economics Notes For UPSC Examination

Demand and Supply – Demand Curve, Supply Curve & Market Equilibrium

Topic-Wise GS 3 Questions for UPSC Mains

Minimum Alternate Tax (MAT) – UPSC Indian Economy Notes

Carbon Tax – Meaning and an Overview [UPSC Notes]

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