Revenue plays a very important role in the development of any country especially in developing country like India. Direct taxes have a important part in the revenue of the Central Government. The contribution of the Income Tax is greater than any other direct taxes in the Government revenue. Complex nature of our law relating to taxes, high tax rate, defective administrative machinery and increasing tax liability create the problem of Evasion and Avoidance of Income Tax in India.

Income tax has been effective in India since 1860. Indian Income Tax is lacking in simplicity. Because of its complicated nature, tax-payer find it easy and possible to avoid tax by legal ways.

The object of the present study is to know the causes of evasion and avoidance of Income Tax in India, so as to take remedial measures so that this evil may be abolished, Government may be increased and creation of black money, which is a curse to the economy, may be checked.