SHORT ANSWER:
The income tax department can freeze a bank account if there is a suspicion of tax evasion or non-payment of taxes.
DETAILS:
- The account may be frozen under Section 281B of the Income Tax Act, 1961.
- This action is taken to protect the interest of revenue during the assessment or investigation of tax liabilities.
PUNISHMENT / IMPLICATIONS (if applicable):
- The account holder may face difficulties in accessing funds until the issue is resolved.
SOURCE:
- Income Tax Act, 1961
Related Questions: