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Wilful Tax Evasion To Result In Jail For Up To 7 Years

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Tax evasion, underreporting of income or even skipping from payment of penalty or interest chargeable is an offer as per the Income tax Act and this may land the person involved in jail depending on the amount of tax evaded or under-reported. The jail term could be for any way between 3 months to up to 7 years.

Wilful Tax Evasion To Result In Jail For Up To 7 Years
 

The law covering this aspect of tax evasion falls under Section 276C of the Income Tax Act. And apart from the imprisonment there can also be a fine imposed.

As per the provisions in the section in a case where the amount sought to be skipped or tax on under-reported income if it is in excess of Rs. 25 lakh, the imprisonment term could be up to 7 years with fine. In case of a lesser amount than this there could be imprisonment of up to 2 years with fine.

In an even worse scenario, if a taxpayers intends on willful evasion of 'payment' of tax or penalty or interest under the Act, he can be imposed with an additional imprisonment of at least three months to two years under Section 276C(2) of the Income Tax Act. The person may also be liable to pay fine at discretion of the court.

A willful attempt in the case as per the income tax parlance implies that if a person's books of account or similar document in his control carry a wrong entry or statement.

Also if a person makes any false entry or statement or , omits any entry in the books of account or other documents, it is considered as a wilful attempt to evasion of tax.

GoodReturns.in

Read more about: tax income tax tax evasion
Story first published: Wednesday, July 29, 2020, 16:19 [IST]
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