Yes, tax evasion is a serious problem. In the Income-tax Act of 1961, under Chapter XXII, there are provisions for prosecution of people who indulge in tax evasion. Tax evasion is the main cause behind the problem of a very low tax base in India. You can read about the Black Money, Tax-Evasion & Tax-Avoidance in the given link.
In the 906 cases of tax evasion against exporters, between July 2017 to August 2020, the quantum of tax evasion was Rs 2,551.15 crore.
- Black Money: Definition, Sources & Measures to Curb Black Money. [UPSC Economy]
- Double Taxation Avoidance Agreements (DTAA) – Countries Involved, Income Tax Provisions