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
    Refund of IGST - Export of goods - only because the exporter had claimed drawback @ 1% in regard to ...
    Time limit for availing Input Tax Credit (ITC) - whether GSTR-3B is a return u/s 39(1) of Central GS...
    NewsBills
    Rates for deduction of income-tax at source from “Salaries”, computation of “advance tax” an...
    NewsBills
    Rate of Tax for TDS / Advance Tax -  Individual, Hindu undivided family, association of persons, bo...
    NewsBills
    Rate of Tax for TDS / Advance Tax -  Co-operative Societies
    NewsBills
    Rate of Tax for TDS / Advance Tax -  Firms
    NewsBills
    Rate of Tax for TDS / Advance Tax -  Local authorities
    NewsBills
    Rate of Tax for TDS / Advance Tax -  Companies
    NewsBills
    WIDENING AND DEEPENDING OF TAX BASE - Tax Deduction at Source (TDS) on payment by Individual/HUF to ...
    NewsBills
    TDS at the time of purchase of immovable property
    NewsBills
    Deemed accrual of gift made to a person outside India
    NewsBills
    Mandatory furnishing of return of income by certain persons
    NewsBills
    Inter-changeability of PAN & Aadhaar and mandatory quoting in prescribed transactions.
    NewsBills
    Consequence of not linking PAN with Aadhaar
    NewsBills
    Widening the scope of Statement of Financial Transactions (SFT)
    NewsBills
    MEASURES FOR PROMOTING LESS CASH ECONOMY - Prescription of electronic mode of payments
    NewsBills
    TDS on cash withdrawal to discourage cash transactions
    NewsBills
    Mandating acceptance of payments through prescribed electronic modes
    NewsBills
    TAX INCENTIVES - Incentives to International Financial Services Centre (IFSC):
    NewsBills
    Incentives to Non-Banking Finance Companies (NBFCs)
❯❯
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
    Case LawsGST
    Show AI Summary
    Zero-rated supplies entitlement: IGST refund cannot be denied solely because exporter claimed higher drawback; statutory rules prevail.
    The statutory refund regime treats the shipping bill as a deemed application for IGST refund on exports and allows withholding of refund only in the specific, enumerated circumstances provided by the rules. Administrative circulars cannot override the statute; availing a higher duty drawback or technical limitations in departmental systems do not, without falling within the prescribed withholding contingencies, defeat an exporter's entitlement to IGST refund for zero-rated supplies.
    Case LawsGST
    Show AI Summary
    Input Tax Credit time limit: GSTR 3B is a temporary stopgap and does not fix the statutory monthly return deadline.
    The Court held that GSTR 3B was implemented as a temporary stopgap and was not intended to replace the statutory monthly return; an administrative press release treating GSTR 3B filing as the outer date to avail Input Tax Credit conflicted with the statutory time limit provision and the rules prescribing the monthly return form and manner.
    NewsBills
    Show AI Summary
    Rates for deduction of income-tax at source from salaries set and applied to advance tax and special-case assessments.
    Part III of the First Schedule prescribes rates for deduction of income-tax at source from salaries and for computation of advance tax for the financial year 2019-20; those rates also apply to charging income-tax on current incomes in special assessment cases such as provisional assessment of non-resident shipping profits, assessments of persons leaving India, persons likely to transfer property to avoid tax, and short-duration bodies.
    NewsBills
    Show AI Summary
    Income-tax rates and surcharge rules set slab-based taxation with a graduated surcharge and limits on surcharge impact.
    Slab-based income tax rates are prescribed for individuals, HUFs, AOPs, BOIs and artificial juridical persons with separate resident senior citizen slabs; computed tax is subject to a graduated surcharge for higher incomes, accompanied by a cap mechanism preventing the total tax-plus-surcharge on an income from exceeding the tax at the relevant bracket threshold by more than the excess income above that threshold.
    NewsBills
    Show AI Summary
    Tax rates for co-operative societies remain unchanged; a surcharge with a cap applies to high income societies.
    Rates of income-tax for co-operative societies remain as specified in Paragraph B of Part III of the First Schedule to the Finance Bill, unchanged from the prior year. A surcharge applies to the income-tax of societies exceeding a high-income threshold, subject to a cap that prevents total tax and surcharge from exceeding the tax at the threshold by more than the excess income.
    NewsBills
    Show AI Summary
    Firm tax rate unchanged; surcharge applies to high income firms with a statutory cap limiting surcharge on excess income.
    Rate of tax for firms for TDS and advance tax remains unchanged from the prior year; a surcharge of twelve per cent is levied where a firm's total income exceeds one crore rupees, subject to a cap that limits the aggregate income tax and surcharge on income above the threshold to not exceed the tax on the threshold amount by more than the excess income.
    NewsBills
    Show AI Summary
    Surcharge on local authority income applies above a threshold, with a statutory cap limiting aggregate tax increase.
    The income-tax rate for local authorities is maintained at the prior year's level for purposes of TDS and advance tax; a statutory surcharge is levied where total income exceeds a prescribed threshold. A statutory cap limits the combined income-tax and surcharge so that the aggregate tax on income above the threshold does not exceed the income-tax payable as if income equalled the threshold by more than the excess income.
    NewsBills
    Show AI Summary
    Corporate tax rate revised, varying by domestic status; surcharge and health and education cess apply.
    Income tax rates for companies distinguish domestic and other companies, with domestic companies below a specified turnover threshold subject to a lower rate and others taxed at a higher rate. Surcharge is levied in graded bands for domestic and non domestic companies, with marginal relief caps limiting excess tax attributable to incomes above prescribed thresholds. Certain specified company cases attract a prescribed surcharge rate. A Health and Education Cess is levied on tax including surcharge, and marginal relief is not available in respect of that cess.
    NewsBills
    Show AI Summary
    TDS on individual and HUF payments to contractors and professionals: new withholding applies above threshold; PAN may be used instead of TAN.
    Section 194M imposes withholding on payments by individuals and Hindu undivided families to resident contractors and professionals where the aggregate annual payments exceed the statutory threshold; tax is to be deducted at the prescribed withholding rate and may be deposited using the payer's Permanent Account Number, relieving such payers from the requirement to obtain a Tax Deduction Account Number.
    NewsBills
    Show AI Summary
    TDS on transfer of immovable property now covers ancillary charges, expanding 'consideration' to include fees incidental to sale.
    The Explanation to Section 194-IA is amended to state that consideration for immovable property includes ancillary charges payable by the buyer-such as club membership, car parking, electricity and water facility fees, maintenance fees, advance fees and other similar incidental charges-thereby making these amounts part of the taxable base for TDS on transfer of immovable property other than agricultural land.
    NewsBills
    Show AI Summary
    Deemed accrual of gifts: transfers by Indian residents to nonresidents treated as taxable in India under new provision.
    Gifts of money or property made by a person resident in India to a person outside India, where the property is situated in India or sums are paid, are deemed to accrue or arise in India for tax purposes when made on or after 5 July 2019; existing statutory gift exemptions continue to apply and applicable DTAA provisions remain operative. The amendment takes effect from 1 April 2020 and applies to assessment year 2020-21 onward.
    NewsBills
    Show AI Summary
    Mandatory return filing for high-value transactions expands to include transaction and rollover-based filing triggers.
    Amendments mandate filing of income tax returns by individuals who, during the previous year, undertake specified high-value transactions-including large current account deposits, significant foreign travel expenditure, or substantial electricity consumption-or meet other prescribed conditions; and require persons claiming capital gains rollover exemptions on reinvestment in specified assets to file returns when their pre-rollover total income exceeded the basic exemption limit, even if post-claim income is below that limit.
    NewsBills
    Show AI Summary
    Inter-changeability of PAN and Aadhaar: Aadhaar may be quoted in lieu of PAN and recipients must ensure authentication.
    Proposed amendments allow a person required to quote PAN to furnish an Aadhaar number in lieu of PAN and provide that persons entering certain prescribed transactions who lack a PAN must apply for one; recipients of documents must ensure PAN or Aadhaar is duly quoted and authenticated, and a penalty provision is amended to enforce compliance.
    NewsBills
    Show AI Summary
    PAN-Aadhaar linkage: failure to intimate Aadhaar renders PAN inoperative while preserving prior transactions under proposed amendment.
    Failure to intimate Aadhaar will result in the PAN being made inoperative in the prescribed manner rather than being deemed invalid, with an express provision preserving the validity of transactions previously carried out through that PAN; the amendment is prospective and will take effect from the notified effective date.
    NewsBills
    Show AI Summary
    Statement of Financial Transactions reporting: expanded mandatory reporting, threshold removed and penalties broadened to enhance tax pre-filling.
    Mandatory reporting under the Statement of Financial Transactions is widened to require additional prescribed persons to furnish SFTs, the existing aggregate transaction threshold for reporting is removed to include small-value transactions, defects unrectified within the prescribed time will be treated as furnishing inaccurate information, and penalty provisions are expanded to cover all reporting entities; these amendments take effect from 1st September, 2019.
    NewsBills
    Show AI Summary
    Electronic payment requirement extended to include prescribed electronic modes, altering payment compliance and tax treatment from specified effective dates.
    Amendments add "other electronic mode as may be prescribed" to the list of acceptable non cash payment modes across multiple income tax provisions, so payments or receipts through prescribed electronic instruments will satisfy statutory conditions for donation exemption, capital expenditure recognition, disallowance avoidance, actual cost determination, stamp duty linked valuation, presumptive taxation eligibility, and employment related deductions. The changes apply from specified effective dates: most tax treatment provisions from 1 April 2020 and the prohibitions on specified cash receipts/repayments from 1 September 2019.
    NewsBills
    Show AI Summary
    TDS on cash withdrawals to apply when annual cash withdrawals exceed a threshold, with specified institutional exemptions.
    Section 194N creates a TDS obligation on cash payments from a recipient's account by banks, cooperative banks and post offices when annual aggregate cash withdrawals exceed a prescribed threshold, targeting reduction of cash transactions; specified institutional recipients are exempted, and the Central Government may notify further exemptions in consultation with the Reserve Bank of India, with a statutory commencement provision.
    NewsBills
    Show AI Summary
    Mandatory electronic payment acceptance requires businesses above a turnover threshold to provide prescribed digital payment facilities, with daily penalties.
    A new provision requires persons carrying on business whose total sales, turnover or gross receipts in the immediately preceding previous year exceed a specified turnover threshold to provide facilities for accepting payments through the prescribed electronic modes. Failure to provide such prescribed electronic payment facilities attracts a daily monetary penalty, subject to proof of good and sufficient reasons, with penalty imposition by the Joint Commissioner. A consequential amendment prohibits banks and system providers from imposing any charge for using the prescribed electronic payment modes.
    NewsBills
    Show AI Summary
    IFSC tax incentives expand tax-neutral transfers and exemptions to promote external borrowing and extended profit-linked deductions.
    Proposed IFSC tax measures include treating transfers of specified securities by Category III AIFs with all non-resident unit-holders as not constituting transfer, empowering notification of additional securities, exempting interest payable to non-residents on borrowings by IFSC units, extending tax neutrality to dividends paid out of accumulated IFSC income, exempting distributions by mutual funds in IFSC with all non-resident unit-holders from additional tax, ensuring full access to profit-linked deductions for IFSC units by removing restrictive computation conditions, and increasing the one-hundred-per-cent deduction to any ten consecutive assessment years within a fifteen-year window.
    NewsBills
    Show AI Summary
    Interest recognition rule extended to regulated NBFCs, with deductions allowed only when interest is actually paid by return-filing deadline.
    The accrual-exception that taxes interest on bad or doubtful debts when credited or received is extended to include deposit-taking NBFCs and systemically important non-deposit-taking NBFCs; correspondingly, interest deductions for payments to these NBFCs are allowable only if actually paid on or before the due date for filing the return of income, aligning their tax treatment with other regulated financial institutions.

    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