False verification statements in tax filings attract graduated imprisonment and fines based on the evasion threshold. The clause creates the offence of making a false statement, account or statement in any verification under the Act or rules, where the maker knows, believes it to be false, or does not believe it to be true. Penalties are graduated by the tax-evaded threshold: exceeding twenty-five lakh rupees attracts rigorous imprisonment of not less than six months and up to seven years plus fine; other cases attract rigorous imprisonment of not less than three months and up to two years plus fine.