SHORT ANSWER:
Prosecution for tax evasion involves legal action against individuals or entities that deliberately avoid paying taxes owed.
DETAILS:
- Tax evasion is defined under the Income Tax Act, 1961.
- It includes actions like underreporting income, inflating deductions, or hiding money in offshore accounts.
PUNISHMENT / IMPLICATIONS (if applicable):
- Punishment can include imprisonment for up to 7 years and fines.
- The severity of punishment depends on the amount of tax evaded.
SOURCE:
- Income Tax Act, 1961
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