SHORT ANSWER:
If tax is not paid, the government can impose penalties and take legal action to recover the dues.
DETAILS:
- The Income Tax Act allows for penalties for late payment or non-payment of taxes.
- The government may charge interest on the unpaid tax amount.
- Legal proceedings can be initiated to recover the tax dues.
PUNISHMENT / IMPLICATIONS (if applicable):
- Penalties can range from 100% to 300% of the tax owed.
- Prosecution can lead to imprisonment for severe cases of tax evasion.
SOURCE:
- Income Tax Act, 1961
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