SHORT ANSWER:
The punishment for fake deductions in Income Tax Return (ITR) can include fines and imprisonment.
DETAILS:
- Under Section 277 of the Income Tax Act, 1961, if a person willfully makes a false statement or false representation in the return, they can be prosecuted.
- The penalty can be a fine of up to ₹10,000 or imprisonment for a term that may extend to 7 years.
PUNISHMENT / IMPLICATIONS (if applicable):
- Fine up to ₹10,000.
- Imprisonment for up to 7 years.
SOURCE:
- Income Tax Act, 1961
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