SHORT ANSWER:
Yes, bank accounts can be frozen for tax-related issues.
DETAILS:
- The Income Tax Department can freeze bank accounts if there are pending tax dues or if there is suspicion of tax evasion.
- This action is taken under the provisions of the Income Tax Act.
PUNISHMENT / IMPLICATIONS (if applicable):
- The account holder may face difficulties in accessing funds until the issue is resolved.
- Legal action may be taken if tax evasion is confirmed.
SOURCE:
- Income Tax Act, 1961
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