Question

What is the definition and importance of understanding tax evasion?

Answer 1

"Tax Evasion" literally means evading the burden of taxes, i.e. not paying the tax u r liable to pay to the Government on ur total income BY hiding ur income or not disclosing true and relevant facts regarding sources of ur income. If u have heard of "black money", it is infact a form of tax evasion. Incomes on which have not been disclosed and on which taxes have not been paid is termed as black money.

Answer 2

It's a crime that happens when someone either doesn't pay their taxes or doesn't pay all of them. Often the offender claims deductions to reduce their tax burden that they aren't eligable to take. For example, they might claim to have a home office and in fact the room they claim as an office doesn't meet the requirements.