Tax planning and tax evasion

 11. Write the distinguish between tax planning and tax evasion.

Tax planning is the legal use of the tax code to reduce your tax bill. Tax evasion is the illegal practice of not paying taxes. People evade taxes by hiding money or lying about their income. [1, 2, 3]

Feature	Tax Planning	Tax Evasion
Legality	Legal and encouraged.	Illegal and a crime.
Methods	Using tax deductions and government-approved investments.	Lying, faking records, or hiding income.
Intent	To lower taxes by following the rules.	To break the rules to avoid paying taxes.
Results	Saves money safely.	Leads to heavy fines or jail time.

Think of tax planning like using a store coupon. You save money by following the store's rules. Tax evasion is like stealing an item from the store. You break the law to keep your money, and you get in trouble if you get caught. [3, 4, 5]

You can read more about how tax rules work from the Aditya Birla Capital Guide or the PNB MetLife Tax Resource.

[1] https://www.mylegalbusiness.com/blog/tax-planning-vs-tax-evasion/

[2] https://www.executivecentre.com/en-in/blog-article/tax-avoidance-tax-evasion-difference/

[3] https://getswipe.in/blog/article/difference-between-tax-planning-and-tax-evasion

[4] https://www.hdfclife.com/insurance-knowledge-centre/tax-saving-insurance/what-is-tax-evasion-tax-avoidance-and-tax-planning

[5] https://www.pnbmetlife.com/articles/taxation/what-is-tax-evasion.html