What is the difference between tax evasion and tax avoidance in Indian income tax?

Tax evasion involves illegal activities to deliberately evade payment of taxes by underreporting income, concealing assets, or manipulating financial records. It is a criminal offense punishable under the Income Tax Act. Tax avoidance, on the other hand, involves legal methods and planning techniques used by taxpayers to minimize their tax liability within the framework of the law. While tax avoidance is permissible, tax evasion is illegal and subject to penalties and prosecution.