AN ANALYSIS OF PUNISHMENT AND PENALTIES FOR TAX CRIMES IN INDIA COMPARATIVE STUDY WITH RUSSIA

AUTHOR – RITHIK U C, STUDENT AT SAVEETHA SCHOOL OF LAW, SAVEETHA INSTITUTE OF MEDICAL AND TECHNICAL SCIENCES, (SIMATS)

BEST CITATION – RITHIK U C, AN ANALYSIS OF PUNISHMENT AND PENALTIES FOR TAX CRIMES IN INDIA COMPARATIVE STUDY WITH RUSSIA, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (11) OF 2025, PG. 325-342, APIS – 3920 – 0001 & ISSN – 2583-2344

ABSTRACT

This comparative study examines the punishment and penalty frameworks for tax crimes in India and Russia, analyzing their legal structures, enforcement mechanisms, and effectiveness as deterrents. The research explores how these two diverse economies with significant informal sectors address tax evasion and avoidance through their respective legislative and administrative approaches.The aim of this study is to analyze and compare the punishment and penalties for tax crimes in India and Russia, evaluating their effectiveness in deterring tax evasion and ensuring compliance.  Key differences emerge in their definitional boundaries of tax crimes, severity of sanctions, and enforcement priorities, reflecting their distinct legal traditions and policy objectives.Tax crimes are a significant concern for governments worldwide as they undermine economic stability, reduce public revenues, and distort fair competition. Countries impose strict penalties and punishments to deter tax evasion, fraud, and other related offenses. This study examines the legal framework governing tax crimes in India and Russia, analyzing the similarities and differences in their approaches.The objective of the study in to examine the factors that influence the severity of punishment for tax crimes in India and to examine whether the current penalties for tax crimes are well effective.The research method followed here is empirical research and the sample frame is 200 collected in and around chennai.The findings is that in India tax enforcement is largely administrative, with criminal prosecution used in extreme cases. Many cases are settled through penalties rather than imprisonment and in Russia enforcement is more centralized, with strict criminal prosecution of tax offenders. Authorities actively monitor tax payments through digital tracking and banking regulations.In conclusion both India and Russia have well-defined laws for tax crimes, but Russia’s system is more centralized and stringent, while India relies on a combination of administrative penalties, voluntary disclosure schemes, and criminal prosecution in severe cases.Russia imposes harsher penalties, including longer prison sentences and asset confiscation, which act as a stronger deterrent. In contrast, India focuses more on fines and voluntary compliance schemes, making its enforcement more flexible but sometimes less effective in preventing tax evasion.

KEYWORDS:

Tax evasion,legal administrative,administrative approaches,banking regulations,economic stability.