Comparison of section 483 "Falsification of books of account or document, etc." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

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....y affect taxpayers, tax practitioners and prosecuting authorities. No effective date or enactment date is stated in the documents. Background & Scope Statutory hooks: Income-tax Act, 2025 (Section 483) and Income Tax Bill, 2025 - Clause 483 (old version). Both texts sit under the Part/Heading "OFFENCES AND PROSECUTION." The provision targets the falsification of books of account or other documents "relevant to or useful in any proceedings against the first person or the second person, under this Act." The mental element required is wilfulness plus intent to enable another person to evade any tax, interest or penalty chargeable and imposable under the Act. The documents do not supply definitions beyond the substantive wording of the offenc....

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....xt: to penalise deliberate falsification intended to enable tax evasion by another person. The provision sets a subjective mens rea (wilfulness and intent) combined with an objective act (making or causing a false entry). The text indicates that proof of actual success (actual evasion) is unnecessary, signalling intent to deter preparatory or facilitative acts irrespective of outcome. Exceptions/Provisos Not stated in the document. Illustrations * Example 1: An accountant knowingly inserts a false receipt in a client's ledger to reduce declared income, intending that a third party (e.g., the client) will use that ledger entry to evade tax. This falls within the described circumstances - wilful false entry with intent to enable anot....

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....al Act contains two sub-sections: (1) combined description and penalty; (2) the evidentiary provision that proving actual evasion is not necessary. Thus the same material is present but reordered and consolidated. * Wording differences: The substantive elements-wilfulness, intent to enable another to evade tax/interest/penalty, false entry or statement known to be false or not believed to be true, and relevance of books/documents-are materially the same across both texts. No additional mens rea, increased penalty range, or new exceptions appear in the final text provided. Practical impact of these changes: * Clarity and readability: The final Act's consolidation of the act-description and penalty into a single sub-section improves ....