A STUDY ON TAX EVASION AND FALSE ACCOUNTING WITH SPECIAL REFERENCE TO INCOME TAX ACT, 1961

AUTHOR – A.MOHAMED FAHIM* & Mr.M.DHINESH ,LLM ,MBA**

* STUDENT AT SAVEETHA SCHOOL OF LAW, SAVEETHA MEDICAL AND TECHNICAL SCIENCES(SIMATS), CHENNAI-600 007

** ASSISTANT PROFESSOR AT SAVEETHA SCHOOL OF LAW, SAVEETHA MEDICAL AND TECHNICAL SCIENCES(SIMATS), CHENNAI-600 007

BEST CITATION – A.MOHAMED FAHIM & Mr.M.DHINESH, A STUDY ON TAX EVASION AND FALSE ACCOUNTING WITH SPECIAL REFERENCE TO INCOME TAX ACT, 1961, INDIAN JOURNAL OF LEGAL REVIEW (IJLR), 5 (11) OF 2025, PG. 670-683, APIS – 3920 – 0001 & ISSN – 2583-2344

ABSTRACT:

Tax Evasion is an illegal way to minimize tax liability through fraudulent techniques like deliberate under-statement of taxable income or inflating expenses. It is an unlawful attempt to reduce one’s tax burden. Tax Evasion is done with a motive of showing fewer profits in order to avoid tax burden.Whereas False accounting fraud involves an employee or an organisation altering, destroying or defacing any account; or presenting accounts from an individual or an organisation so they don’t reflect their true value or the financial activities of that company.The major objectives of the study is to believe that addressing tax evasion and false accounting is crucial for maintaining a fair and transparent financial system.The research method followed here is am empirical research.A total of 205 samples have been collected out of which all samples have been collected through a convenient sampling method.The sample frame is taken in and around Chennai by online google forms.The independent variables are Age,Gender,Occupation,Place of residenceThe statistical tool graph represented.The major findings of this paper is all about the tax evasion and false accounting.Therefore,in summary, tax evasion happens when individuals or businesses play tricky games to lower their taxes. This could lead to hefty fines according to the Income Tax Act of 1961. It’s important to do things right and pay the proper amount of tax to steer clear of major financial problems.

Keywords:Tax evasion, False accounting, Financial System, Fraudulent techniques