Penalties for evading and making false tax returns are serious and can include both financial penalties and imprisonment. According to the information provided:
- If a person willfully evades or attempts to evade tax, or willfully and fraudulently claims a refund of tax to which they are not entitled, they may be guilty of an offense. Upon conviction, they could be liable to pay a fine not exceeding 10 million rupees or face imprisonment for a term not exceeding two years, or both.
- Making a false return, omitting information that should be included in a return, or providing misleading statements to a tax official can result in a penalty of either 50,000 rupees or an amount equal to the tax that would have been underpaid or the refund that would have been overclaimed if the false statement had been accepted, whichever is greater.
- Employers who omit remuneration from a declaration, understate the amount of income tax deducted, or give a false certificate of income tax deduction, thereby evading or attempting to evade income tax, can be convicted and are liable to a fine or imprisonment.
- For VAT, making an incorrect return can result in a penalty not exceeding 25,000 rupees and a sum equal to twice the amount of the difference between the total tax claimed in the assessment and the tax paid on the return, provided there was no fraud or wilful neglect involved.
It is important to comply with tax laws and regulations to avoid these penalties. If there is any uncertainty or need for clarification, it is advisable to consult with a tax professional or the relevant tax authority.
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