SHORT ANSWER:
Hiding foreign income can lead to penalties under the Income Tax Act, 1961.
DETAILS:
- Individuals must disclose their global income in their income tax returns.
- Failure to disclose foreign income can result in scrutiny by tax authorities.
PUNISHMENT / IMPLICATIONS (if applicable):
- Penalties can include fines and interest on unpaid taxes.
- Serious cases may lead to prosecution under the Income Tax Act.
SOURCE:
- Income Tax Act, 1961
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