The Fundamental objective of collecting Tax is to raise government revenue for development and welfare programs in the country. The Secondary objectives is to maintain economic equalities by imposing tax to the income earners and improving the economic condition of the generalpeople, to encourage the production and distributionof the products of basic needs and discourage theproduction and harmful ones, to discourage import trade and protect the national industries. India being one of the largest democracies has a verycomplex taxation structure featured with a large number of taxes, excessive and complex tax literature (rules and laws), and inefficient administration. According to the white paper published by Indian government on black money in 2012, Govt cannot deny the presenceof parallel economy in the country. The amount of thisparallel economy is nearly equal to the GDP.