SHORT ANSWER:
Ignoring an income tax notice can lead to penalties and legal action by the Income Tax Department.
DETAILS:
- The Income Tax Department may impose penalties for non-compliance.
- Legal proceedings can be initiated against the taxpayer.
- The taxpayer may face additional tax liabilities and interest on unpaid taxes.
PUNISHMENT / IMPLICATIONS (if applicable):
- Penalties can range from 50% to 200% of the tax due.
- Prosecution under the Income Tax Act may lead to imprisonment.
SOURCE:
- Income Tax Act, 1961
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