SHORT ANSWER:
Hiding income can lead to penalties under the Income Tax Act.
DETAILS:
- Under Section 270A of the Income Tax Act, if a person underreports their income, they may face a penalty.
- The penalty can be 50% of the tax payable on the underreported income.
PUNISHMENT / IMPLICATIONS (if applicable):
- If the income is concealed, it may lead to prosecution under Section 276C of the Income Tax Act, which can result in imprisonment.
SOURCE:
- Income Tax Act, 1961
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