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Income-tax abetment penalties revised: custodial terms reduced to simple imprisonment tiers and fines, effective retrospectively March 1, 2026. Section 278 is amended to replace prior rigorous-imprisonment tiers with a three-tier penalty matrix: simple imprisonment up to two years or fine or both where evaded amounts exceed fifty lakh rupees; simple imprisonment up to six months or fine or both where amounts exceed ten lakh but do not exceed fifty lakh rupees; and fine in other cases. The substitution removes previous minimum rigorous-imprisonment requirements and is effective retrospectively from 1 March 2026.
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Income-tax abetment penalties revised: custodial terms reduced to simple imprisonment tiers and fines, effective retrospectively March 1, 2026.
Section 278 is amended to replace prior rigorous-imprisonment tiers with a three-tier penalty matrix: simple imprisonment up to two years or fine or both where evaded amounts exceed fifty lakh rupees; simple imprisonment up to six months or fine or both where amounts exceed ten lakh but do not exceed fifty lakh rupees; and fine in other cases. The substitution removes previous minimum rigorous-imprisonment requirements and is effective retrospectively from 1 March 2026.
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