In India, tax evasion is always a criminal offence. In the Income-tax Act of 1961, under Chapter XXII, there are provisions for prosecution of people who indulge in tax evasion. You can read about the Black Money, Tax-Evasion & Tax-Avoidance in the given link.
Based on the quantum of tax evasion, the offenders can be imprisoned for a minimum period of 3 months and a maximum period of seven years.
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