Legally reducing one’s taxable income is known as tax avoidance. Hiding, concealing or manipulating the information about one’s income with the tax authorities is known as tax evasion. Tax evasion is completely illegal in the eyes of the law. You can read about the Black Money, Tax-Evasion & Tax-Avoidance in the given link.
Tax evasion will invite penalties, fines and even imprisonment from a minimum time of 3 months to a maximum of 7 years, depending on the magnitude of tax evasion.
- Black Money: Definition, Sources & Measures to Curb Black Money. [UPSC Economy]
- Double Taxation Avoidance Agreements (DTAA) – Countries Involved, Income Tax Provisions