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
    Rationalization of the provisions of sections 271AAB, 271AAC and 271AAD of the Act
    NewsBills
    Rationalization of provisions relating to assessment and reassessment
    NewsBills
    Set off of loss in search cases - Amendment in the provisions of section 79A of the Act
    NewsBills
    Amendment in Faceless Assessment under section 144B of the Act
    NewsBills
    Faceless Schemes under the Act
    NewsBills
    Similar amendment is proposed in Section 271C.
    NewsBills
    Alignment of the provisions relating to Offences and Prosecutions under Chapter XXII of the Act
    NewsBills
    Cash credits under section 68 of the Act
    NewsBills
    Amendment in the provisions of section 248 of Income-tax Act and insertion of new section 239A
    NewsBills
    Withdrawal of exemption under clauses (8), (8A), (8B) and (9) of section 10 of the Income-tax Act, 1...
    NewsBills
    Withdrawal of concessional rate of taxation on dividend income under section 115BBD
    NewsBills
    Scheme for taxation of virtual digital assets
    NewsBills
    Provisions pertaining to bonus stripping and dividend stripping to be made applicable to securities ...
    NewsBills
    Widening the scope of reporting by producers of cinematograph films or persons engaged in specified ...
    NewsBills
    TDS on benefit or perquisite of a business or profession
    NewsBills
    Rationalization of provisions of TDS on sale of immovable property
    NewsBills
    Rationalization of provisions of section 206AB and 206CCA to widen and deepen tax-base
    NewsBills
    Facilitating strategic disinvestment of public sector companies
    NewsBills
    Exemption of amount received for medical treatment and on account of death due to COVID-19
    NewsBills
    Condition of releasing of annuity to a disabled person
❯❯
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
    Penalty authority expanded: Commissioner (Appeals) may now impose penalties for undisclosed income; per day penalty increased.
    Amendments enable the Commissioner (Appeals) to levy penalties alongside the Assessing Officer for provisions targeting undisclosed income, unexplained credits or expenditures, and falsification or omission in books of account; and increase the per day penalty for failures to answer questions, sign statements, furnish information, returns or allow inspections to strengthen deterrence. These measures are to take effect from 1 April 2022.
    NewsBills
    Show AI Summary
    Assessment and reassessment procedures clarified, aligning search linked notices, limitation exclusions and officer level safeguards.
    Proposed amendments streamline assessment and reassessment procedure by removing duplicate approval requirements for notices under section 148 where an order under section 148A(d) exists, correcting drafting errors in section 148 explanations, extending search/requisition consequences into assessments under sections 143(3), 144 and 147, prescribing officer level approval norms for post search orders, excluding a capped period from limitation where material is seized or requisitioned, and clarifying the meaning of information and threshold conditions for issuing section 148 notices.
    NewsBills
    Show AI Summary
    Undisclosed income set-off prohibited: losses and unabsorbed depreciation cannot be adjusted against income found by search or survey.
    Section 79A prohibits set-off of any loss, whether brought forward or otherwise, and unabsorbed depreciation under sub section (2) of section 32 against undisclosed income discovered as a result of a search under section 132, requisition under section 132A, or survey under section 133A (excluding surveys under sub section (2A) of section 133A). "Undisclosed income" is defined to include money, valuables, books entries or transactions not recorded or not disclosed before the detection, and expense entries found to be false and revealed only because of the detection action.
    NewsBills
    Show AI Summary
    Faceless assessment process: centralised NaFAC-driven electronic workflow directing assessment, verification, technical review and dispute procedures.
    The amendment centralises faceless assessment through a National Faceless Assessment Centre which assigns cases to Assessment Units and routes all notices, responses, verification requests and technical referrals electronically to Verification, Technical and Review Units; communications are authenticated by digital signature, electronic verification code or portal login and all internal exchanges occur via NaFAC with automated allocation and real time alerting.
    NewsBills
    Show AI Summary
    Faceless procedures expanded for transfer pricing, dispute resolution and tribunal appeals, after allowing stabilization and consultation.
    Introduction of faceless procedures under specified direct tax sections (92CA, 144C, 253, 255) is deferred to allow IT system stabilization and Ministry of Law & Justice consultation; appellate procedures must align with tribunal procedure and non-assessment functions will follow phased faceless assessment workflows.
    NewsBills
    Show AI Summary
    Prosecution for failure to pay tax collected at source extended to mirror prosecution provisions for tax deducted at source.
    The proposal brings offences for failure to pay tax collected at source into the same prosecution provisions that apply to failures to pay tax deducted at source by expressly including the statutory provision for non-payment of tax collected at source within those prosecution sections, on the basis of the similar nature of the offences; the amendment is to take effect from the stated commencement date.
    NewsBills
    Show AI Summary
    Sunset clause on historic prosecutions: prohibits initiation of fresh prosecutions under section 276AB from April 2022.
    Amendments propose a sunset clause in section 276AB to bar initiation of fresh prosecutions after 1 April 2022 for offences connected with transfers of immovable property made in the period when Chapter XX-C had been rendered inapplicable, while permitting continuation of prosecutions already initiated; additionally, section 276B is to be amended to substitute its cross-reference with an explicit reference to the proviso to the withholding provision to remove ambiguity created by prior amendments.
    NewsBills
    Show AI Summary
    Source of funds requirement for credited sums now requires creditor's explanation, with regulated venture funds exempted.
    Amendment requires that any sum credited in an assessee's books-whether as loan, borrowing or other liability-will be treated as explained only if the source of funds is satisfactorily explained in the hands of the creditor or entry-provider; exception excludes regulated venture capital entities from this additional onus, and the change applies from the stated operative date to the listed assessment year and thereafter.
    NewsBills
    Show AI Summary
    Withholding tax refund procedure now allows the payer to seek refund from the Assessing Officer, with appellate review.
    A new provision allows a person who deducted and bore tax under an agreement, where no deduction was required, to apply to the Assessing Officer for refund; the Assessing Officer may examine the underlying agreement, and the applicant may appeal the Assessing Officer's order to the Commissioner (Appeals). The previous route under section 248 will not apply for payments on or after the appointed date, effecting a procedural shift to assessment stage review.
    NewsBills
    Show AI Summary
    Exemption withdrawal for foreign technical-assistance remuneration; such income will be taxable from the assessment year beginning April next year.
    The article sets out the phase-out of exemptions under clauses (8), (8A), (8B) and (9) of section 10 for remuneration, fees and related foreign-source income connected to cooperative or agency technical assistance programmes, describing existing eligibility rules (foreign citizenship/non-ordinary residency, nonresident status, prescribed-authority approvals) and explaining the policy rationale of tax simplification and protecting India's treaty taxing rights; the clauses are proposed to be inapplicable to income for the previous year relevant to the assessment year beginning on or after 1 April 2023.
    NewsBills
    Show AI Summary
    Concessional tax on foreign dividends removed, aligning tax treatment of foreign and domestic corporate dividends going forward.
    Withdrawal of the concessional regime under Section 115BBD ends the special tax rate for dividends received by an Indian company from a specified foreign company, aligning their treatment with domestic dividends by making Section 115BBD inapplicable for assessment years beginning on or after the first day of April, 2023 so that such dividends are taxed in the shareholder's hands at applicable rates plus surcharge and cess.
    NewsBills
    Show AI Summary
    Taxation of virtual digital assets: new flat tax and mandatory withholding reshape transfers and gifting rules.
    A dedicated tax regime segregates income from transfer of virtual digital assets under section 115BBH, taxing such income at a dedicated rate without deductions except cost of acquisition and disallowing set-off or carry forward of related losses. Section 194S mandates tax deduction at source on payments for transfer to residents with rules for in-kind consideration, specified person exemptions, treatment of suspense accounts as payee credits, and Board-issued guidelines; the definition of virtual digital asset (including NFTs) and gift taxation are adjusted with notification powers for the Central Government.
    NewsBills
    Show AI Summary
    Bonus and dividend stripping rules extended to securities and pooled investment units, widening anti avoidance coverage.
    Section 94's anti avoidance provisions will be amended to apply sub section (8) on bonus stripping to securities and to expand dividend stripping rules to units of pooled investment vehicles by revising the Explanation to redefine "unit" to include business trust units such as InvITs, REITs and AIFs, thereby closing existing scope gaps and applying the provisions from the specified assessment year forward.
    NewsBills
    Show AI Summary
    Expanded reporting obligations now require producers and specified activity persons to report aggregate payments to tax authorities.
    Section 285B is expanded to require producers of cinematograph films and persons engaged in specified activities to furnish Form 52A statements reporting particulars of aggregate payments above the prescribed threshold made to or due from each person engaged, with timing governed by the end of the financial year or completion of the work.
    NewsBills
    Show AI Summary
    TDS on business perquisites: providers must deduct tax at source before delivering benefits or perquisites.
    A new section 194R mandates that the person responsible for providing any benefit or perquisite arising from business or profession to a resident must deduct tax at source on the value or aggregate value of such benefit or perquisite before providing it; where benefits are wholly in kind or partly in cash with insufficient cash to meet the deduction, tax must be ensured paid before release. Exemptions apply below a specified annual value threshold and for individuals or HUFs below specified turnover limits in the preceding year, with a stated effective date.
    NewsBills
    Show AI Summary
    TDS on immovable property: deduction based on higher of consideration or stamp duty value, with threshold exemption.
    The amendment requires TDS on transfer of immovable property to be deducted on the higher of the consideration payable or the stamp duty value of the property, ensuring consistency with valuation rules for income and capital gains; if both values are below the prescribed monetary threshold, no TDS is required, and "stamp duty value" carries the meaning assigned in the Act's Explanation.
    NewsBills
    Show AI Summary
    Specified person rule shortened to increase TDS/TCS coverage and prompt taxpayers to furnish returns under revised criteria.
    Amendments reduce the non-filing window for the specified person from two years to one year for higher TDS/TCS applicability, substitute 'furnishing' for 'filing' to reflect electronic returns, correct deductor/collectee terminology, exclude specified withholding provisions and certain simplified individual/HUF regimes from section 206AB, and amend cross-references in section 194-IB; effective from April 1, 2022.
    NewsBills
    Show AI Summary
    Change in shareholding rule: majority voting power retention after strategic disinvestment preserves carry forward of losses, subject to condition.
    Amendment creates a conditional exemption from the change in shareholding bar on carry forward and set off of losses for an erstwhile public sector company where the ultimate holding company, immediately after strategic disinvestment, continues to hold, directly or through subsidiaries, an aggregate majority of the voting power; failure to maintain that majority in a subsequent year triggers application of the change in shareholding rule for that and later years.
    NewsBills
    Show AI Summary
    Exemption for COVID-19 medical and death payments: employer payments fully exempt; third-party payments exempt subject to cap and time limit.
    Amendments exclude COVID 19 related medical and death payments from taxable income: employer payments for an employee's or family member's COVID 19 medical treatment will not be treated as a perquisite; gratuitous receipts for COVID 19 medical expenditure received from any person, and ex gratia or other payments to family members on death from the deceased's employer (without limit) or from others up to a capped aggregate within a prescribed period, will not be income, subject to conditions and the statutory definition of family. These changes are retrospective to 1 April 2020.
    NewsBills
    Show AI Summary
    Disability deduction extended to allow lifetime annuity or lump-sum payments when subscriber reaches senior age and payments cease.
    Amendment permits deduction under Section 80DD where annuity or lump-sum payments are made to a disabled dependant during the lifetime of the subscriber provided the subscriber has attained senior age and payments or deposits have been discontinued; amounts so received by the dependant before death are not to be treated as the assessee's income under the prior deeming 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