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
Make Most of Text Search
  1. Checkout this video tutorial: How to search effectively on TaxTMI.
  2. Put words in double quotes for exact word search, eg: "income tax"
  3. Avoid noise words such as : 'and, of, the, a'
  4. Sort by Relevance to get the most relevant document.
  5. Press Enter to add multiple terms/multiple phrases, and then click on Search to Search.
  6. Text Search
  7. The system will try to fetch results that contains ALL your words.
  8. Once you add keywords, you'll see a new 'Search In' filter that makes your results even more precise.
  9. Text Search
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
    NewsBills
    Clarification regarding advance tax while filing Updated Return
    NewsBills
    Relief from special provision for higher rate of TDS/TCS for non-filers of income-tax returns
    NewsBills
    Facilitating TDS credit for income already disclosed in the return of income of past year
    NewsBills
    TDS on payment of accumulated balance due to an employee
    NewsBills
    Tax treaty relief at the time of TDS under section 196A of the Act
    NewsBills
    Excluding non-banking financial companies (NBFC) from restriction on interest deductibility
    NewsBills
    Amendments in consequence to new provisions of TDS
    NewsBills
    Penalty for furnishing inaccurate statement of financial transaction or reportable account
    NewsBills
    Provisions relating to reassessment proceedings
    NewsBills
    Modification of directions related to faceless schemes and e-proceedings
    NewsBills
    Alignment of timeline provisions under section 153 of the Act
    NewsBills
    Rationalization of the provisions of the Prohibition of Benami Property Transactions Act, 1988 (the ...
    NewsBills
    Provisions related to business reorganisation
    NewsBills
    Assistance to authorised officer during search and seizure
    NewsBills
    Rationalisation of Appeals to the Appellate Tribunal
    NewsBills
    Reducing the time provided for furnishing TP report
    NewsBills
    Introduction of the authority of Joint Commissioner (Appeals)
    NewsBills
    Extension of time for disposing pending rectification applications by Interim Board for Settlement
    NewsBills
    Defining the cost of acquisition in case of certain assets for computing capital gains
    NewsBills
    Prevention of double deduction claimed on interest on borrowed capital for acquiring, renewing or re...
❯❯
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
    NewsBills
    Show AI Summary
    Interest computation on updated returns clarified: interest calculated on assessed tax reduced by claimed advance tax credit, retrospective.
    The amendment specifies that interest under the general interest provision shall be computed on the assessed tax reduced by the amount of advance tax credit claimed in the earlier return, if any; this clarification applies to interest computation for updated returns and is made retrospective to the commencement of the updated return regime.
    NewsBills
    Show AI Summary
    Specified person exclusion: amendment exempts those not required to file returns from higher TDS/TCS consequences, effective April.
    The definition of specified person for higher TDS/TCS is amended to exclude any person who is not required to furnish a return for the relevant assessment year and who is notified by the Central Government in the Official Gazette, thereby relieving persons not required to file from the special higher withholding regime.
    NewsBills
    Show AI Summary
    TDS credit facilitation lets taxpayers apply to amend prior assessments to claim later-deducted TDS as credit.
    A provision enables an assessee who reported income in an earlier return to apply to the Assessing Officer within two years from the end of the financial year in which TDS was later deducted, for amendment of the earlier assessment or intimation to allow credit of that TDS in the relevant assessment year; rectification rules apply so far as practicable with the limitation period reckoned from the end of the financial year when TDS was deducted, and the same TDS cannot be credited in any other year.
    NewsBills
    Show AI Summary
    TDS on accumulated provident fund payments: non PAN payees taxed at the standard non PAN rate under section 206AA, not maximum.
    The amendment omits the second proviso to Section 192A so that where a payee fails to furnish PAN in respect of an accumulated balance payment under the Employees' Provident Fund Scheme, tax will be deducted at the non PAN rate prescribed under section 206AA rather than at the maximum marginal rate; the exemption for payments below the monetary threshold remains unaffected and the change is effective from 1 April 2023.
    NewsBills
    Show AI Summary
    Tax treaty relief: lower TDS on specified non-resident fund income where residency certificate is furnished under treaty.
    Amendment provides that TDS on payments to eligible non-residents for specified mutual fund units or specified company distributions shall be at the lower of the statutory rate and the rate under the applicable tax treaty, where the payee furnishes the required tax residency certificate; the change is effective from 1 April 2023.
    NewsBills
    Show AI Summary
    Interest deduction limitation: proposed carve-out to exclude specified NBFCs from restrictions on interest deductibility under the Act.
    The Finance Bill proposes to amend the exclusion from the interest deductibility restriction so that nothing in sub section (1) shall apply to: (i) companies engaged in banking or insurance; or (ii) such class of non banking financial companies as may be notified by the Central Government, with "non banking financial company" adopting the Act's established definition and the amendment effective from 1 April 2024.
    NewsBills
    Show AI Summary
    TDS compliance: failing to ensure tax on in kind benefits, VDAs and online winnings invites penalty and prosecution.
    Amendments add references to the first provisos of Section 194R and Section 194S and to subsection (2) of proposed Section 194BA into Section 271C (penalty) and Section 276B (prosecution), thereby making failure to deduct or to ensure payment of tax where benefits, virtual digital assets or online-game winnings are wholly or partly in kind subject to penalty equal to the tax not deducted or paid and to prosecution; drafting changes align language with parent TDS provisions and the amendments have staged commencements.
    NewsBills
    Show AI Summary
    Penalty for false self-certification: reporting institutions face an additional levy and may recover amounts from account holders.
    A new sub section makes a prescribed reporting financial institution liable to an additional fixed monetary penalty when an inaccuracy in its statement of specified financial transactions or reportable accounts is due to false or inaccurate information submitted by the account holder; the penalty is imposed by the income tax authority prescribed for the reporting provision, and the reporting institution may recover the amount from or retain funds of the reportable account holder.
    NewsBills
    Show AI Summary
    Reassessment limitation period: exclusion and deeming extend notice timelines for searches conducted late in the year.
    Amendments streamline reassessment by prescribing a three month deadline to furnish a return to a section 148 notice (subject to AO extension) and state that returns filed beyond that period will not be deemed returns under section 139. Section 149's limitation rules are preserved, with provisos excluding a fifteen day period from limitation computations and deeming notices arising from late year searches or requisitions to have been issued on the last day of the financial year. Section 151's specified authority list is clarified and the excluded/extended period must be counted when computing the three year threshold.
    NewsBills
    Show AI Summary
    Power to amend directions for faceless and e-proceedings enables post-expiry modification by notification in Official Gazette.
    The Central Government may amend or modify directions issued for faceless schemes and e-proceedings after the originally prescribed time limits, by notification in the Official Gazette, where such directions were issued before the expiry of those limitation periods; the amendment power has specified commencement dates for different provisions.
    NewsBills
    Show AI Summary
    Assessment time limits expanded to permit fuller scrutiny, align updated return treatment and extend search linked reassessment periods.
    The proposal amends section 153 to extend timeframes for completion of assessment and reassessment, align the period applicable to orders following updated returns, insert a new sub section to extend limitation periods where search under section 132 or requisition under section 132A is initiated or where seized material relates to the assessee, and to make existing timeline provisions applicable to revision orders passed by senior commissioners, with prospective commencement provided in the Bill.
    NewsBills
    Show AI Summary
    Appeal filing period revised - time runs from receipt of the adjudicating authority's order at the IO or aggrieved party.
    The amendments shift the start of the appeal limitation period to the date an Adjudicating Authority's order is received in the office of the Initiating Officer or the aggrieved person, and they extend the same rule to orders under section 54A. They also modify the definition of High Court to provide jurisdictional clarity for non-resident appellants or respondents by designating the High Court where the Initiating Officer's office is located when no ordinary residence, business or gainful work place falls within any High Court's territory. Effective date: 1 April 2023.
    NewsBills
    Show AI Summary
    Business reorganisation obligations require successors to file modified returns and compel Assessing Officers to align assessments with reorganisation orders.
    Section 170A requires successor companies affected by a business reorganisation to furnish a modified return in prescribed form and manner limited to the reorganisation order, enabling modification of predecessor returns. The Assessing Officer must, on receipt, modify completed assessments or assess/reassess pending proceedings in accordance with the reorganisation order and the modified return, with all other Act provisions applying and tax charged at the rate applicable to the relevant assessment year.
    NewsBills
    Show AI Summary
    Search and seizure powers expanded to allow Board approved external experts and registered valuers to assist with valuation and data forensics.
    Amendments permit authorised officers during searches to requisition Board approved persons or entities, including digital forensic experts and registered valuers, to assist with search, valuation and data analysis, and require such valuers to submit prescribed fair market value reports to the authorised officer or Assessing Officer within the stipulated timeline; the law also defines execution of the last authorisation to link assessment timelines to the close of search proceedings.
    NewsBills
    Show AI Summary
    Appeals to Appellate Tribunal broadened to include penalties by Commissioner (Appeals) and revision orders by senior commissioners.
    The amendment expressly permits appeals to the Appellate Tribunal against penalty orders imposed by Commissioner (Appeals) under recent penalty provisions, and permits appeals against revision orders by senior commissioners and related rectifications. It also broadens the right to file a memorandum of cross-objections so respondents may file cross-objections in all cases that may be appealed to the Appellate Tribunal, correcting the previous limitation to appeals originating only from Commissioner (Appeals).
    NewsBills
    Show AI Summary
    Timeframe for transfer pricing document production shortened; limited extension remains to manage TP proceeding timelines.
    The amendment reduces the period to furnish transfer pricing information or documents to ten days from the date of a notice, with an available extension on application by the taxpayer not to exceed an additional thirty days; the Assessing Officer or the Commissioner (Appeals) may require such production in proceedings concerning international transactions or specified domestic transactions. The change is aimed at streamlining timelines for examination of submitted material and takes effect from 1st April, 2023.
    NewsBills
    Show AI Summary
    Joint Commissioner (Appeals) authority created to hear specified first appeals with transfer, rehearing and scheme-based procedural powers.
    Introduction of a Joint Commissioner (Appeals) as a first appellate authority for specified orders of Assessing Officers below Joint Commissioner rank, vested with powers similar to Commissioner (Appeals). The proposal lists appealable orders (assessment, reassessment, withholding/collection intimations, penalty and rectification amendments), permits transfers of pending appeals between Commissioner (Appeals) and Joint Commissioner (Appeals) with rehearing rights, allows the Government to notify a Scheme to streamline procedures and remove direct interface technologically, and empowers the Board to exclude cases or classes; consequential definitional amendments align the new office.
    NewsBills
    Show AI Summary
    Extension of time for settlement procedures to allow interim boards more time to dispose rectification applications.
    The Finance Act, 2021 abolished the Settlement Commission retrospectively from 01.02.2021 and authorized Interim Boards for Settlement to handle pending applications; clause (iv) of sub section (9) of section 245D excluded the period from 01.02.2021 until constitution of the IBS from time limit computation and assured a minimum remaining period, and the Finance Bill, 2023 proposes substituting that clause to extend specified expiring time limits to 30.09.2023 with retrospective effect from 01.02.2021 to allow IBS additional time for disposing rectification and amendment applications.
    NewsBills
    Show AI Summary
    Cost of acquisition deemed nil for certain intangible assets, altering capital gains computation and taxability.
    Amendment treats the cost of acquisition and cost of improvement of capital assets that are intangible assets or other rights for which no consideration was paid as Nil for computing capital gains, clarifying that assets not covered by existing enumerated provisions shall have no cost basis, and thereby resolving judicial uncertainty about taxability of gains on such transfers. The amendment applies prospectively from the Bill's stated effective date and to subsequent assessment years.
    NewsBills
    Show AI Summary
    Prevention of double deduction: interest claimed under house property or chapter VIA excluded from cost of acquisition for capital gains.
    The Finance Bill proposes a proviso to section 48 that the cost of acquisition or cost of improvement shall exclude any interest amount claimed as a deduction under section 24 or under Chapter VIA, to prevent double deduction when computing capital gains.

    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