The article discusses how tax evasion and avoidance impact the revenue collection for the government in India. The main goal is to understand the reasons behind these practices and explore ways to prevent them. Tax evasion and avoidance reduce the money available for public welfare programs like healthcare and education. The government relies on taxes to fund these services, so when people avoid paying their fair share, it affects everyone. The paper looks at different methods used to evade taxes and the laws in place to combat these practices in 2020 and 2021.