Tax evasion involves illegally misrepresenting financial information to reduce tax liability, while tax avoidance uses legal means. The McDonald's in Ludhiana pays a disproportionate amount of VAT compared to other restaurants. Crime Branch in Jammu and Kashmir found a firm misused tax numbers, importing goods worth Rs. 1.20 crore without paying taxes. Income Tax raids found unreported income worth Rs. 35,000 crore in Swiss bank accounts and Rs. 85 lakh in cash.