Wilful tax evasion and false accounting entries attract graded punishment under the Income-tax Act. Wilful attempt to evade tax, penalty or interest, including under-reporting of income, is punishable under the Income-tax Act. The provision also covers a wilful attempt to evade payment of tax, penalty or interest, with graded punishment based on the amount sought to be evaded and without prejudice to other penalties under the Act. The explanation extends the offence to false entries, omissions, and other acts in books or documents that facilitate evasion.