SHORT ANSWER:
Yes, the Income Tax Department can freeze bank accounts in India under certain circumstances.
DETAILS:
- This action can be taken if there is a suspicion of tax evasion or if a taxpayer has not paid their dues.
- The department must follow due process and provide a notice before freezing the account.
PUNISHMENT / IMPLICATIONS (if applicable):
- The taxpayer may face penalties and interest on unpaid taxes.
- The frozen account may restrict access to funds until the issue is resolved.
SOURCE:
- Income Tax Act, 1961
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