Just a moment...

Top
Help
×

By creating an account you can:

Logo TaxTMI
>
Call Us / Help / Feedback

Contact Us At :

E-mail: [email protected]

Call / WhatsApp at: +91 99117 96707

For more information, Check Contact Us

FAQs :

To know Frequently Asked Questions, Check FAQs

Most Asked Video Tutorials :

For more tutorials, Check Video Tutorials

Submit Feedback/Suggestion :

Email :
Please provide your email address so we can follow up on your feedback.
Category :
Description :
Min 15 characters0/2000
Add to...
You have not created any category. Kindly create one to bookmark this item!
Create New Category
Hide
Title :
Description :
❮❮ Hide
Default View
Expand ❯❯
Close ✕
🔎 TMI Notes - Adv. Search
TEXT SEARCH:

Press 'Enter' to add multiple search terms. Rules for Better Search

Search In:
Main Text + AI Text
  • Main Text
  • Main Text + AI Text
  • AI Text
Law:
---- All Laws----
  • ---- All Laws----
  • Benami Property
  • Bill
  • Central Excise
  • Companies Law
  • Customs
  • DGFT
  • FEMA
  • GST
  • GST - States
  • IBC
  • Income Tax
  • Indian Laws
  • Money Laundering
  • SEBI
  • SEZ
  • Service Tax
  • VAT / Sales Tax
Types:
---- All Types ----
  • ---- All Types ----
  • Act Rules
  • Case Laws
  • Circulars
  • Manuals
  • News
  • Notifications
Sort By: ?
In Sort By 'Default', exact matches for text search are shown at the top, followed by the remaining results in their regular order.
RelevanceDefaultDate
    Act RulesIncome Tax
    Comparison of section 324 "Charge of tax in case of a firm." between the Income-Tax Act, 2025 (as pa...
    Act RulesIncome Tax
    Comparison of section 323 "Liability of directors of private company." between the Income-Tax Act, 2...
    Act RulesIncome Tax
    Comparison of section 311 "Charge of tax where shares of members in association of persons or body o...
    Act RulesIncome Tax
    Comparison of section 308 "Charge of tax in case of oral trust." between the Income-Tax Act, 2025 (a...
    Act RulesIncome Tax
    Comparison of section 307 "Charge of tax where share of beneficiaries unknown." between the Income-T...
    Act RulesIncome Tax
    Comparison of section 305 "Right of representative assessee to recover tax paid." between the Income...
    Act RulesIncome Tax
    Comparison of section 304 "Liability of representative assessee." between the Income-Tax Act, 2025 (...
    Act RulesIncome Tax
    Comparison of section 301 "Interpretation." between the Income-Tax Act, 2025 (as passed) and the Inc...
    Act RulesIncome Tax
    Comparison of section 298 "Levy of interest and penalty in certain cases." between the Income-Tax Ac...
    Act RulesIncome Tax
    Comparison of section 296 "Time-limit for completion of block assessment." between the Income-Tax Ac...
    Act RulesIncome Tax
    Comparison of section 295 "Undisclosed income of any other person." between the Income-Tax Act, 2025...
    Act RulesIncome Tax
    Comparison of section 294 "Procedure for block assessment." between the Income-Tax Act, 2025 (as pas...
    Act RulesIncome Tax
    Comparison of section 293 "Computation of total undisclosed income of block period." between the Inc...
    Act RulesIncome Tax
    Comparison of section 292 "Assessment of total undisclosed income as a result of search." between th...
    Act RulesIncome Tax
    Comparison of section 291 "Intimation of loss." between the Income-Tax Act, 2025 (as passed) and the...
    Act RulesIncome Tax
    Comparison of section 288 "Other amendments" between the Income-Tax Act, 2025 (as passed) and the In...
    Act RulesIncome Tax
    Comparison of section 287 "Rectification of mistake." between the Income-Tax Act, 2025 (as passed) a...
    Act RulesIncome Tax
    Comparison of section 286 "Time limit for completion of assessment, reassessment and recomputation" ...
    Act RulesIncome Tax
    Comparison of section 285 "Other provisions." between the Income-Tax Act, 2025 (as passed) and the I...
    Act RulesIncome Tax
    Comparison of section 283 "Provision for cases where assessment is in pursuance of an order on appea...
❯❯
MaximizeMaximizeMaximize
0 / 200
Expand Note
Add to Folder

No Folders have been created

    +

    Are you sure you want to delete "My most important" ?

    NOTE:

    Notes
    Showing Results for :
    Reset Filters
    Results Found:
    Show All SummariesHide All Summaries
    Act RulesIncome Tax
    Show AI Summary
    Charge of tax on firms: statutory source choice alters which central enactment prescribes the applicable rate for a year.
    Both texts charge tax on a firm's total income but differ in the statutory source for the applicable rate: the Bill points to the annual tax statute as the operative source, while the Act uses a broader reference to any Central Act for the relevant year, potentially expanding the range of enactments that may prescribe the rate and introducing additional interpretive and administrative considerations.
    Act RulesIncome Tax
    Show AI Summary
    Director liability: personal joint and several responsibility for unrecoverable company tax, unless director disproves gross neglect or misfeasance.
    Section 323 imposes joint and several liability on persons who were directors of a private company during the relevant tax year where tax due (including penalty, interest and fees) cannot be recovered, operating irrespective of the Companies Act, 2013. A director is exempt only if he proves the non-recovery cannot be attributed to gross neglect, misfeasance or breach of duty. The Act omits a narrow conversion-to-public-company saving that appeared in the original Bill, thereby broadening potential director exposure.
    Act RulesIncome Tax
    Show AI Summary
    Taxation of AOPs/BOIs: unknown member shares trigger top personal rates on aggregate income; known shares require apportioned taxation.
    Where members' shares in an AOP/BOI are indeterminate or unknown, the entity's total income is taxed at the maximum marginal rate or at any higher rate applicable to a member's total income; where shares are determinate, each member's other income is tested against the Finance Act's non taxable threshold and portions attributable to higher rate members are taxed at those rates while the balance is taxed at the maximum marginal rate, with a deeming rule treating indeterminacy at formation or thereafter as sufficient.
    Act RulesIncome Tax
    Show AI Summary
    Oral trust taxation: trustee receipts are taxed at the maximum marginal rate, shifting compliance and liability to trustees.
    Tax on income connected to an oral trust is charged at the maximum marginal rate when a trustee receives or is entitled to receive income on behalf of or for the benefit of any person under an oral trust (per section 303(3)), irrespective of other provisions; the Bill had instead charged the income of the person appointed under an oral trust.
    Act RulesIncome Tax
    Show AI Summary
    Tax on unallocated trust income risks top marginal taxation unless beneficiaries and shares are expressly stated and ascertainable.
    Representative assesses holding income for beneficiaries with unspecified or indeterminate shares are taxable at the maximum marginal rate unless a court order, trust instrument or wakf deed expressly identifies beneficiaries and their ascertainable shares on the relevant date; limited exceptions allow taxation at association of persons rates where beneficiaries lack other significant income, where the trust is a sole testamentary trust, where a bona fide historical non testamentary trust for dependants exists, or for bona fide employee benefit funds, and business profits are normally subject to the top rate unless the narrow will trust exception applies.
    Act RulesIncome Tax
    Show AI Summary
    Representative assessee recovery rights secure retention via Assessing Officer certificate limiting recoverability at final settlement.
    A representative assessee who pays any sum under the Act may recover it from the principal or retain an equivalent amount in his representative capacity; a person who apprehends such assessment may retain estimated liability from monies payable to the principal; on dispute the Assessing Officer may issue a certificate authorising retention pending final settlement; recoverability is capped by the certificate amount, except where the representative holds additional assets of the principal, and the enacted text ties that cap to the time of final settlement.
    Act RulesIncome Tax
    Show AI Summary
    Representative assessee liability: treated as beneficial owner for assessment, with revenue able to reach beneficiaries directly.
    Section 304 treats a representative assessee as if the income were beneficially his for duties, liabilities and assessment; it places assessment liability on the representative in his own name, contains an exclusivity rule preventing assessment of the same income under other provisions, preserves the Assessing Officer's power to assess or recover tax directly from the beneficial owner, prescribes a pro rata formula for beneficiaries' share of a chargeable trust income, and grants the revenue equivalent remedies against property under the representative's control.
    Act RulesIncome Tax
    Show AI Summary
    Block period definition governs temporal scope for assessing undisclosed income, including virtual digital assets and documents.
    Clause 301 defines the block period as the six tax years preceding the tax year of a search or requisition plus the portion of that tax year to the date of the last authorisation, and deems the last authorisation executed on the conclusion recorded in the last panchnama for searches or on actual receipt for requisitions. It defines undisclosed income in two limbs: tangible and intangible items or entries representing undisclosed income (including virtual digital assets), and expenses/exemptions/deductions/allowances claimed under the Act that are found incorrect, and it lists books, documents and valuables as requisitioned or seized items.
    Act RulesIncome Tax
    Show AI Summary
    Levy of interest and penalty in search cases: interest accrues and an administrative penalty may attach to undisclosed income when returns are not furnished.
    Where a return required by a search notice is not filed, the provision charges interest on tax determined in the search assessment for the period from the day after the notice deadline until assessment completion, and permits an administrative penalty measured by reference to the tax leviable on undisclosed income determined in that assessment. A conditional bar prevents penalty for the block period if the return is filed, tax is paid with evidence, and no appeal is filed against the returned portion; any undisclosed income in excess of declared amounts remains penalizable. Procedural safeguards include a hearing, higher level approval for large penalties, and specified limitation and exclusion rules.
    Act RulesIncome Tax
    Show AI Summary
    Time-limit for completion of block assessment: statutory period anchored to quarter-end with specified exclusions and minimum remaining period.
    Time-limit for completion of block assessment fixes a statutory period for passing orders under the special search/block assessment procedure, anchors computation to a calendar endpoint, prescribes enumerated excluded periods (including custody of seized items, court stays, information exchange references, audit and valuation processes, references to valuation or appellate authorities, penalty and avoidance arrangement references, and Advance Rulings proceedings), provides a minimum remaining period protection after exclusions, and includes month end rounding; the enacted text shifts the anchor from month end to quarter end and refines exclusion wording and cross references.
    Act RulesIncome Tax
    Show AI Summary
    Undisclosed income transfer to other person's AO triggers block assessment and fixes abatement reference to receipt date.
    When an Assessing Officer is satisfied that seized money, assets, books, documents or any information therein pertain to a person other than the person searched, those materials must be handed to the Assessing Officer having jurisdiction over that other person, who shall proceed under section 294 and apply the block assessment provisions; for abatement under section 292 the reference date for the other person is the date the receiving AO obtains the seized materials or information.
    Act RulesIncome Tax
    Show AI Summary
    Block assessment procedure: time limited compelled return after search, limits revision rights and prescribes applicable procedural and penalty provisions.
    Section 294 compels a time limited special return of undisclosed income following a search or requisition, treats that return as within a specified return regime, precludes revised returns, prescribes which procedural and penalty provisions shall apply or be excluded, and requires prior approval by senior officers before issuing the notice.
    Act RulesIncome Tax
    Show AI Summary
    Total undisclosed income: rules for block-period computation, exclusions for short-period transfer-pricing transactions and loss restrictions.
    Computation of the total undisclosed income of the block period aggregates undisclosed income declared under the statutory declaration mechanism and undisclosed income determined by the Assessing Officer from seized material, survey or requisition results, and other material coming to the AO's notice; it prescribes temporal windows for book-based computation, excludes certain international and specified domestic transactions in the short inter-authorisation period from block computation to be assessed separately, and restricts set-off of brought-forward losses and unabsorbed depreciation against undisclosed block income while allowing carry-forward post-block period.
    Act RulesIncome Tax
    Show AI Summary
    Block assessment procedure centralises search-related assessments, abating parallel year-wise proceedings where initiated and enabling revival on annulment.
    Assessing Officers must assess or reassess the total undisclosed income of the block period under the Part, with those proceedings taking priority over ordinary year wise assessments; pending assessments for years in the block period abate (and may be deemed to have abated on the date certain notices were issued), non undisclosed income of the year of last authorisation is assessed separately, multiple searches are sequenced with timing extensions where needed, and abated proceedings may be revived if Part proceedings or specified orders are annulled.
    Act RulesIncome Tax
    Show AI Summary
    Intimation of loss: mandatory written notification to assessee when loss is established and eligible for carry forward and set-off.
    Section 291 requires the Assessing Officer to notify the assessee by an order in writing the amount of loss as computed by him when (a) a loss is established in assessment and (b) the assessee is entitled to carry forward and set off that loss for the purposes of the listed statutory provisions. The duty is mandatory and procedural, linking the notification obligation to both the establishment of loss in assessment and the assessee's statutory entitlement to carry forward and set-off.
    Act RulesIncome Tax
    Show AI Summary
    Recomputation of assessments tied to triggering events allows targeted amendments within specified limitation periods.
    Clause 288 permits an Assessing Officer to amend or recompute completed assessments in a limited set of scenarios triggered by downstream events-such as reassessment or recomputation orders, valuation or compensation revisions, patent revocation, settlement of foreign tax disputes, or validated transfer pricing determinations-with timelines generally governed by a four year limitation reckoned from the end of the relevant financial year or specified event, and subject to procedural safeguards and cross references to amendment and limitation provisions.
    Act RulesIncome Tax
    Show AI Summary
    Rectification of mistake: tax authorities may amend orders and intimations, with notice and hearing before raising liability.
    Section 287 authorises specified income tax authorities to amend orders and intimations to rectify mistakes apparent from the record, excluding matters considered and decided in appeal or revision. Amendments that increase liability require notice of intention and a reasonable opportunity of being heard; reductions in liability require refund by the Assessing Officer and increases require service of a notice of demand. A four year outer limitation from the end of the financial year of the original order or intimation applies, subject to section 288, and taxpayer applications must be disposed within six months of the relevant month end.
    Act RulesIncome Tax
    Show AI Summary
    Time limits for tax assessments impose short limitation windows, with tolling for procedural delays and transfer pricing processes.
    Section 286 prescribes specific limitation periods for assessments, reassessments and recomputations linked to dates in a statutory table, generally imposing one year windows with limited shorter periods; it provides a 12 month extension where a Transfer Pricing Officer reference is made, enumerates discrete exclusion/tolling events (including hearings, stays, audit and valuation references, advance ruling applications, exchange of information references, declarations under anti avoidance provisions and search/requisition periods), and supplies minimum residual time and remedial extension rules to ensure Assessing Officers retain a baseline time to conclude proceedings.
    Act RulesIncome Tax
    Show AI Summary
    Mandatory cessation of reassessment proceedings when taxpayer demonstrates assessed amount meets correct liability, limiting assessing officer discretion.
    Section 285 fixes tax in section 279 proceedings at rates as if escaped income were included, conditions mandatory cessation of those proceedings on two cumulative showings by the assessee (assessment not lower than correct liability or properly made assessment/computation, and absence of any impugnment under specified challenge provisions), and renders final that cessation by barring reopening of matters concluded by listed orders; procedural modalities and evidentiary standards are not specified.
    Act RulesIncome Tax
    Show AI Summary
    Assessment notices to implement appellate orders may be issued at any time, subject to existing time-bar exceptions.
    Clause 283 permits issuance of a section 280 notice at any time to make assessments, reassessments or recomputations to give effect to appellate orders or Approving Panel directions, but it does not apply where, at the time the triggering order or reference occurred, other statutory time-limiting provisions already precluded assessment for the tax year concerned; the enacted text narrows the express override language compared with the Bill, potentially limiting displacement of constraints within the omitted procedural provision.

    TMI Notes

    Back

    All TMI Notes

    Showing Results for :
    Reset Filters
      No Records Found

      TMI Notes

      Back

      All TMI Notes

      whatsappJoin Channel
      Showing Results for : Reset Filters

      Comparison of section 479 "Failure to furnish returns of income." between the Income-Tax Act, 2025 (as passed) and the Income-Tax Bill, 2025 (as originally introduced)

      16 September, 2025

      Contents
      Acts
      Rules & Regulations
      Summary
      Note

      Note

      -

      Bookmark

      Print

      Print

      Section 479 Failure to furnish returns of income

      Income-tax Act, 2025

      At a Glance

      This document is Clause 479 of the Income Tax Bill, 2025 (Old Version) entitled "Failure to furnish returns of income." It prescribes penal consequences where a person wilfully fails to furnish, in due time, a return of income required under specified sections. The provision affects taxpayers (individuals and companies), enforcement authorities and the prosecutorial framework. Effective date or enactment date: Not stated in the document.

      Background & Scope

      Statutory hook: Clause 479 sits under the chapter heading "OFFENCES AND PROSECUTION" within the Income Tax Bill, 2025. It addresses criminal liability for willful failure to furnish a return required u/s 263(1) or by notice u/ss 268(1) or 280. The clause distinguishes high-value evasion cases (where the amount of tax that would have been evaded exceeds twenty-five lakh rupees) from other cases, and sets minimum and maximum terms of imprisonment and fine. The text provides no in-line definitions; any defined terms (for example, "wilfully", "return of income", "total income", or precise meanings of sections 263, 268, 280) must be located elsewhere in the Bill or Act. Not stated in the document: detailed definitions or legislative intent beyond the penal scheme.

      Statutory Provision Mode

      Text & Scope

      Clause 479(1) criminalises a person's wilful failure to furnish, in due time, the return of income required u/s 263(1) or by notice u/ss 268(1) or 280. Two tiers of punishment are specified:

      • Sub-clause (a): where the amount of tax that would have been evaded (if the failure had not been discovered) exceeds twenty-five lakh rupees - rigorous imprisonment not less than six months and up to seven years; and liability to fine.
      • Sub-clause (b): in any other case - imprisonment not less than three months and up to two years; and liability to fine.

      Clause 479(2) creates a bar to prosecution for failure to furnish the return u/s 263(1) for any tax year, if either:

      • (a) the return is furnished before the expiry of one year from the end of the tax year or a return is furnished u/s 263(6) within the time provided in that section; or
      • (b) for a person other than a company, the tax payable on total income determined on regular assessment, reduced by advance tax or self-assessment tax paid before the expiry of one year from the end of the tax year and any tax deducted or collected at source, does not exceed ten thousand rupees.

      Interpretation

      The clause uses the conventional penal structure: mens rea ("wilfully") plus an act (failure to furnish). The text indicates legislative policy to differentiate between significant evasion (greater than Rs. 25 lakh) and lesser cases by calibrating maximum and minimum imprisonment. The immunity provisions in sub-section (2) embody a limited safe harbour, permitting prosecution to be avoided where the return is subsequently furnished within the specified time or where the tax shortfall is de minimis for non-companies. The clause ties the exemption under (2)(a) specifically to temporal compliance (one year from the end of the tax year) or to compliance u/s 263(6); (2)(b) uses the same temporal reference for counting late tax payments for the de-minimis test.

      Exceptions/Provisos

      The provision itself contains its exceptions at sub-section (2): temporal cure of the default and a monetary de-minimis threshold applicable to non-company taxpayers. There are no other provisos or carve-outs in the text. Not stated in the document: whether the de-minimis threshold applies to companies (the clause expressly excludes companies) or any alternative thresholds for companies; the policy reasoning for the Rs. 10,000 limit; procedural consequences where immunity conditions are met (for example, whether civil penalties remain payable) are not stated.

      Illustrations

      • Example 1: A non-company taxpayer fails to file the return for AY 2025-26 but files the return within one year from the end of the tax year; therefore, under clause 479(2)(a) prosecution would be barred. (Consistent with the text.)
      • Example 2: A person wilfully fails to furnish a return and the tax that would have been evaded is assessed at Rs. 30 lakh; the person is punishable under clause 479(1)(a) with rigorous imprisonment between six months and seven years and liable to fine. (Consistent with the text.)
      • Example 3: A corporate taxpayer whose shortfall is under Rs. 10,000 but who did not pay the advance tax before the expiry of one year may not benefit from clause 479(2)(b) because the exclusion expressly applies only to persons "not being a company." (Consistent with the text.)

      Interplay

      The clause references sections 263(1), 263(6), 268(1) and 280. The provision's practical import therefore depends on the procedural timelines and definitions set out in those sections. The document does not reproduce or summarise sections 263, 268 or 280, nor any Rules, Notifications or Circulars that may interpret them. Not stated in the document: interaction with penal provisions elsewhere in the Bill/Act (for example, provisions dealing with prosecution procedure, compoundability, or assessment procedures) and whether prosecution under Clause 479 can be combined with other criminal charges for related tax offences.

      Differences Between the Two Provisions and Practical Impact

      • Wording on Fine Liability: Document 1 (Section 479, Income-tax Act, 2025) states the punishments "with fine" in sub-clauses (a) and (b). Document 2 (Clause 479 of the Income Tax Bill, 2025 (Old Version)) states the offender "shall also be liable to fine."
        • Practical impact: No substantive difference in penalty exposure; the Bill's language emphasises an additional fine liability whereas the enacted version uses a shorter phrase. Both imply imprisonment plus fine; no material change in sanction quantum is specified in either text.
      • Timing/Conditions for Curing Failure (sub-section (2)(a)): Document 2 (Bill, Old Version) provides that a person shall not be proceeded against if "the return is furnished by him before the expiry of one year from the end of the tax year or a return is furnished by him u/s 263(6) within the time provided in that section." Document 1 (Act, enacted Section 479) instead provides that a person shall not be proceeded against if "a return is furnished by him u/s 263(4) or 263(6)."
        • Practical impact: The Bill's Old Version allows a specific time-limit cure (within one year from the end of the tax year) as an immunity condition; the enacted Act replaces that explicit one-year cure by reference to section 263(4) (which presumably contains the timing) and 263(6). If section 263(4) contains a different time frame than one year, this is a substantive change to the available safe harbour; if 263(4) corresponds to the one-year provision, the change is largely stylistic. The enacted text removes the redundant explicit "one year" phrasing and anchors the immunity to the procedure in section 263(4). The practical consequence depends on the content of section 263(4) (Not stated in the document).
      • Timing Reference in Sub-section (2)(b): Document 2 reduces the tax payable threshold calculation by referencing amounts "paid before the expiry of one year from the end of the tax year." Document 1 modifies that to amounts "paid before the expiry of period specified u/s 263(4)".
        • Practical impact: Similar to (2)(a), the Bill's Old Version uses an explicit one-year benchmark for counting advance/self-assessment tax payments; the enacted version ties the benchmark to section 263(4). Whether this expands or narrows the scope of immunity depends on the actual period specified in section 263(4) (Not stated in the document).

      Practical Implications

      • Compliance and risk areas: The clause elevates the stakes for deliberate non-filing by providing significant custodial exposure where the tax evaded exceeds Rs. 25 lakh. Taxpayers should be aware that willful non-filing, once construed by authorities as intentional, exposes them to criminal prosecution unless the specified cure is available. For companies, the de-minimis safe harbour in sub-section (2)(b) does not apply, exposing corporate failures to prosecution even for relatively small tax shortfalls (Not stated in the document: reason for exclusion of companies).
      • Record-keeping/evidence points: Relevant documentary evidence to demonstrate timely payment of advance or self-assessment tax (dates and amounts) and evidence of filing within the one-year window will be material to establishing the bar in sub-section (2). Evidence of absence of wilfulness (for example, correspondence, bona fide difficulties) would also be relevant to rebut the mens rea requirement; however, procedural guidance on burden of proof is Not stated in the document.

      Key Takeaways

      • Clause 479 criminalises wilful failure to furnish returns required under specified sections, with tiered custodial penalties linked to the amount of tax evaded.
      • High-value cases (tax evaded > Rs. 25 lakh) attract rigorous imprisonment of six months to seven years plus fine; other cases attract imprisonment of three months to two years plus fine.
      • Prosecution is barred if the return is filed within one year from the end of the tax year (or u/s 263(6) within its time) or where, for non-companies, the net tax liability after qualifying payments does not exceed Rs. 10,000.
      • The provision excludes companies from the monetary de-minimis immunity; the rationale and alternative company thresholds are Not stated in the document.
      • The provision's practical effect depends on the content and timelines of sections 263, 268 and 280, which are not reproduced here; those cross-references must be consulted to determine exact temporal and procedural mechanics.

      Full Text:

      Section 479 Failure to furnish returns of income

      Topics

      ActsIncome Tax