What happens if I do not disclose an income and do not pay tax for the same?

One of my Friend was getting huge incomes in form of commission, apart from his regular salary income, for which he has provided his PAN number and the payer is also deducting TDS for the same, but he is not willing to disclose this income what will happen? will the IT departement track him? If so what is the amount of tax he has to pay?

6 Replies to “What happens if I do not disclose an income and do not pay tax for the same?”

  1. IT department knows that he is getting the commissions since TDS is being deducted at source when the payment is done to him. Its just a matter of time and surely IT dept would catch up and then he may face huge penalties and imprisonment.
    Best thing for him is to pay advance tax against the commissions immediately .

  2. See. Not paying tax is a problem not just with you but with every Indian. We compare India to US, UK, Canada and even to Malaysia/Singapore and we hope India will become something like that one day.
    All developments and infrastructure need money. I don’t neglect the fact that there are people swindling money. And how a government gets the money is through various taxation and some resources.
    So don’t follow the bad examples. Let’s be the front runner. Lets do our part. It is not worth running away from IT department and get caught.
    Don’t always think off or encourage those who think off how to beat a system. That’s why those developed countries are truely developed b’cos people just do what they’re supposed to do.

  3. if the tax is being deducted at souce by his employer, where is the question of hiding it. he has to file income tax return.
    if u think he is concealing lot of money, report him to commissioner of income tax in your state. u will get a reward for this action

  4. IT department tracks all cases, as their resources or limited, they go by the amount of evasion in general and other cases by Random.

    If your friend get caught the IT law is very severe. You are saying huge income, definitely he will get into IT net soon.

  5. The department can find that person because the PAN number for the salary and the PAN number for commission is same. Through PAN number they can find out his tax payments through TDS. If he is Lucky, then he can escape. If he go on continuing the same one day or other he will be caught. At that time he has to pay penalty about 100% on tax.

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