What Are The Implications Of Tax Evasion?

Income tax authority will levy penalty charges against you for Evading Tax.  You would have attempted for tax evasion means for concealing your income in your tax return file. Hence, you will be charged with penalty which would be anywhere up to 3 times the amount of income concealed. For Instance, if the tax evaded amount is 10, 000, you can be charged a penalty of anywhere between 10, 000 to 30, 000.

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What should you do to avoid such a situation?

As a tax payer you should be aware about income for which tax are ‘deducted at source’ and ‘not deducted at source’. For e.g. Post office saving deposit interest, interest on bank savings account, rent received from property among other things, are the incomes for which TDS (Tax Deducted at Source) are not charged.  Therefore, while filing returns make sure you disclose all these gains and incomes in your return file.

Also, you should be careful while filing returns because if once your return is picked up for scrutiny, apart from the financial impact, you will witness a lot of mental anxiety. So, consider paying tax as your fundamental duty and avoid making unnecessary mistakes while filing your return.

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