Tax evasion can lead to heavy penalties, imprisonment, asset seizure, and long-term damage to financial reputation and legal standing.
This infographic details the legal and financial consequences of tax evasion in India. Offenders face penalties ranging from 100% to 300% of the tax evaded, and in severe cases, imprisonment from three months to seven years under the Income Tax Act1235
. The government can freeze bank accounts, seize assets, and restrict financial activities such as obtaining loans or renewing passports. Legal proceedings can result in high costs and significant damage to personal and business reputations. Non-compliance may also lead to travel bans and disruption of business operations.