Non-compliance with tax laws in India can attract various penalties depending on the nature and severity of the violation. Some of the common penalties are: Late filing penalty: If a taxpayer fails to file their tax returns within the due date, they may have to pay a penalty of up to Rs. 10,000. Interest on late payment: If a taxpayer fails to pay their taxes on time, they may be charged an interest of 1% per month on the outstanding tax amount. Penalty for under-reporting of income: If a taxpayer under-reports their income, they may be penalized with an amount equal to 50% of the tax on the under-reported income. Penalty for misreporting of income: If a taxpayer misreports their income, they may be penalized with an amount equal to 200% of the tax on the misreported income. Penalty for failure to maintain books of accounts: If a taxpayer fails to maintain proper books of accounts, they may be penalized with an amount of Rs. 25,000. Penalty for failure to deduct or collect tax: If a taxpayer fails to deduct or collect tax at source, they may be penalized with an amount equal to the tax that was not deducted or collected. Prosecution: In cases of serious tax evasion, the taxpayer may face prosecution under the Income Tax Act, which can result in imprisonment and/or monetary fines. It is important for taxpayers to comply with tax laws and file their tax returns on time to avoid penalties and other legal consequences.