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 506 "Furnishing of information or documents by an Indian concern in certain ca...
    Act RulesIncome Tax
    Comparison of section 505 "Submission of statement by a non-resident having liaison office." between...
    Act RulesIncome Tax
    Comparison of section 500 "Provisional attachment to protect revenue in certain cases." between the ...
    Act RulesIncome Tax
    Comparison of section 489 "Presumption as to assets, books of account, etc., in certain cases." betw...
    Act RulesIncome Tax
    Comparison of section 488 "Offences by Hindu undivided family." between the Income-Tax Act, 2025 (as...
    Act RulesIncome Tax
    Comparison of section 487 "Abetment of false return, etc." between the Income-Tax Act, 2025 (as pass...
    Act RulesIncome Tax
    Comparison of section 484 "Abetment of false return, etc." between the Income-Tax Act, 2025 (as pass...
    Act RulesIncome Tax
    Comparison of section 483 "Falsification of books of account or document, etc." between the Income-T...
    Act RulesIncome Tax
    Comparison of section 479 "Failure to furnish returns of income." between the Income-Tax Act, 2025 (...
    Act RulesIncome Tax
    Comparison of section 478 "Wilful attempt to evade tax, etc." between the Income-Tax Act, 2025 (as p...
    Act RulesIncome Tax
    Comparison of section 476 "Failure to pay tax collected at source." between the Income-Tax Act, 2025...
    Act RulesIncome Tax
    Comparison of section 476 "Failure to pay tax to credit of Central Government under Chapter XIX-B" b...
    Act RulesIncome Tax
    Comparison of section 475 "Removal, concealment, transfer or delivery of property to prevent tax " b...
    Act RulesIncome Tax
    Comparison of section 470 "Penalty not to be imposed in certain cases." between the Income-Tax Act, ...
    Act RulesIncome Tax
    Comparison of section 469 "Power to reduce or waive penalty, etc., in certain cases." between the In...
    Act RulesIncome Tax
    Comparison of section 465 "Penalty for failure to answer questions, sign statements, furnish informa...
    Act RulesIncome Tax
    Comparison of section 456 "Penalty for failure to furnish statement or information or document by an...
    Act RulesIncome Tax
    Comparison of section 455 "Penalty for furnishing inaccurate statement of financial transaction or r...
    Act RulesIncome Tax
    Comparison of section 452 "Penalty for failure to comply with provisions of section 187." between th...
    Act RulesIncome Tax
    Comparison of section 451 "Penalty for failure to comply with provisions of section 186." between th...
❯❯
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
    Information-furnishing obligation: Indian concerns must produce prescribed documents when foreign interests derive value from India assets.
    An information-furnishing obligation requires an Indian concern to provide prescribed information or documents to the prescribed income-tax authority when a foreign company's or entity's shares or interests derive substantially their value from assets located in India and those assets are held, directly or indirectly, through the Indian concern; specific documents, the authority, the period and the manner of furnishing are to be specified by subordinate prescription.
    Act RulesIncome Tax
    Show AI Summary
    Reporting obligation for liaison offices: annual statement to tax authorities subject to deadlines and particulars as prescribed.
    Non-residents with RBI/FEMA authorised liaison offices must annually prepare and deliver to the Assessing Officer a statement of the office's activities for the tax year in such form, containing such particulars and within such period as may be prescribed, with the deadline and particulars to be specified by subordinate legislation rather than fixed in the statute.
    Act RulesIncome Tax
    Show AI Summary
    Provisional attachment protects revenue during assessments, requiring competent authority approval and revocation on provision of bank guarantees.
    Clause 500 permits an Assessing Officer, with prior Competent Authority approval and by written order, to provisionally attach property during assessment, reassessment of escaped income or specified penalty proceedings; attachment follows the statutory attachment procedure and valuation by a Valuation Officer. Attachment is revocable on furnishing a scheduled bank guarantee generally equal to fair market value (or a lower guarantee if accepted); guarantees may be invoked on default. Temporal limits apply (initial six months with limited extensions) and proceeds are adjusted against existing demands with balances deposited in designated accounts.
    Act RulesIncome Tax
    Show AI Summary
    Presumption as to assets extended to electronic information and computer systems when tendered as prosecutorial evidence.
    The statute extends the evidentiary presumption applicable to assets, books of account and documents found in searches or taken into custody to include information in electronic form and computer systems, applying the presumptive framework when such items are tendered in evidence and qualifying that application by the phrase "so far as may be, apply"; the Act cross-references statutory definitions for electronic information and computer systems to ensure consistent meaning.
    Act RulesIncome Tax
    Show AI Summary
    Karta liability and member culpability: members can be prosecuted regardless of Karta's due diligence defence under the revised provision.
    The provision deems the Karta guilty for offences committed by an HUF unless he proves absence of knowledge or that he exercised all due diligence; members are separately liable if the offence was committed with their consent or connivance or is attributable to their neglect, and the Act clarifies that such member liability applies irrespective of both the Karta's deemed guilt and his due-diligence defence.
    Act RulesIncome Tax
    Show AI Summary
    Corporate vicarious liability tightened: personal liability now operates notwithstanding due diligence where consent, connivance or neglect is shown.
    Section 487 creates both a deeming rule treating companies and those in charge as guilty for corporate tax offences and a separate personal-liability route making directors, managers, secretaries, officers, partners and controlling members individually culpable where an offence is committed with their consent, connivance or attributable to their neglect; a statutory defence allows persons deemed guilty to avoid liability by proving lack of knowledge or that they exercised all due diligence, but the enacted text makes the personal-liability route operate irrespective of the deeming rule and the due diligence defence.
    Act RulesIncome Tax
    Show AI Summary
    Abetment of false return: two-tier custodial penalties and fine where tax impact determines higher or lower sentencing.
    Abetment of false return criminalises abetting or inducing another to make a false tax-related account, statement or declaration where the abettor knows it is false or does not believe it to be true, and prescribes a two tier sentencing regime based on the monetary magnitude of tax, penalty or interest evaded or wilfully attempted to be evaded; textual differences between the Bill and the enacted section are limited to phrasing around liability to fine and an editorial sentence, with no observable change to imprisonment ranges or threshold.
    Act RulesIncome Tax
    Show AI Summary
    Falsification of books: criminalises willful false entries to enable another's tax evasion, allowing prosecution without proving actual evasion.
    Section 483 proscribes falsification of books or other documents when a person wilfully makes or causes a false entry or statement, knowing it to be false or not believing it to be true, with intent to enable another to evade tax, interest or penalty; the offence carries rigorous imprisonment and fine, and it is not necessary to prove that the other person actually succeeded in evading tax.
    Act RulesIncome Tax
    Show AI Summary
    Failure to furnish tax returns: criminal penalties with tiered custody and limited safe harbour for late filing.
    Criminal liability is imposed for wilful failure to furnish a required return of income, with a two-tiered custodial and fine regime linked to the amount of tax evaded. A limited bar to prosecution exists where the return is subsequently furnished within the procedural time references or, for non-companies, where the residual tax shortfall after qualifying payments falls below a de minimis threshold. The scope of the safe harbour depends on the timing rules in the cross referenced procedural subsection.
    Act RulesIncome Tax
    Show AI Summary
    Wilful attempt to evade tax: criminalises deliberate falsification and omissions, with tiered imprisonment and fines.
    Section 478 criminalises a wilful attempt to evade tax and wilful under reporting by prescribing tiered rigorous imprisonment and fines, and it lists illustrative acts-false entries, omissions, possession of falsified books and conduct enabling evasion. The Act relocates and rephrases fine and penalty preservation language into a standalone non prejudice clause and tightens causation wording in an illustrative sub clause. Definitions of key terms and procedural or evidentiary standards are not provided in the text.
    Act RulesIncome Tax
    Show AI Summary
    Failure to remit tax collected at source criminalised, exposing collectors to imprisonment and fine; exception for timely remittance.
    Failure to remit to Government the tax collected at source is a penal offence punishable by imprisonment and fine, targeting persons who collect tax at source and imposing personal liability for payment to Government credit. A narrow temporal exception excludes application where payment has been made on or before the time prescribed for filing the relevant statement, and the provision contains no mitigating grounds, mens rea gradation, or procedural compounding mechanisms.
    Act RulesIncome Tax
    Show AI Summary
    Failure to remit withheld tax attracts criminal liability including imprisonment and fine; safe harbour if credited before filing deadline.
    Failure to remit taxes deducted under Chapter XIX-B or required by specified Notes to the Table in section 393 constitutes a criminal offence punishable by rigorous imprisonment and fine; the offence applies where a person fails to pay amounts to the credit of the Central Government, subject to a temporal safe harbour if payment is made or credited on or before the time prescribed for filing the relevant statement.
    Act RulesIncome Tax
    Show AI Summary
    Fraudulent disposition of property to frustrate tax execution now criminalised, tied specifically to a certificate drawn under section 413.
    The offence criminalises anyone who fraudulently removes, conceals, transfers or delivers any property or interest therein with intent to prevent such property or interest from being taken in execution of a certificate drawn u/s 413; punishment is rigorous imprisonment up to two years and a fine. The enacted text replaces the Bill's broader "as prescribed" formulation with a direct reference to section 413, clarifying the instrument whose execution the offence seeks to frustrate. The clause contains no exceptions, definitions of "fraudulently," or evidentiary rules.
    Act RulesIncome Tax
    Show AI Summary
    Reasonable cause defence prevents penalties when a taxpayer proves it, expanding protection in the enacted provision.
    Section 470 bars imposition of penalties under the listed provisions where a person or assessee proves there was reasonable cause for the failure; it frames the exception as prevailing irrespective of anything in those provisions and places the burden of proof on the person, while not defining "reasonable cause" or prescribing standards, procedures, or timing for such proof.
    Act RulesIncome Tax
    Show AI Summary
    Discretionary penalty waiver: voluntary pre-detection disclosure and cooperation enable administrative leniency, subject to prior approval thresholds and safeguards.
    Section 469 empowers the Principal Commissioner or Commissioner to reduce or waive penalties under section 439 where there is voluntary, pre detection disclosure, good faith cooperation and payment or satisfactory arrangements for tax and interest; sub section (2) contains a deeming rule for "full and true disclosure." Prior approval from a specified senior authority is required where multi year income/disclosure crosses the statutory threshold or where aggregate penalties to be waived under the hardship route exceed the threshold; once discretionary relief is granted for a person no further relief is available for other tax years. Procedural safeguards and a twelve month disposal timeline apply.
    Act RulesIncome Tax
    Show AI Summary
    Tax penalties for procedural non-compliance impose fixed and daily monetary sanctions and designate imposing authorities by statute.
    Clause 465 distinguishes fixed penalties for discrete refusals or omissions from continuing daily penalties for delays or failures to furnish returns, statements, certificates or allow inspections, caps certain penalties by reference to deductible or collectible tax, allocates specified income tax officers to impose such penalties, and defines "income tax authority"; it cross references multiple substantive provisions and contains no express procedural safeguards, appeal route, or mitigation mechanism.
    Act RulesIncome Tax
    Show AI Summary
    Penalty for non-furnishing by eligible investment funds may be imposed as a fixed sanction for late or missing reports.
    The provision authorises the prescribed income tax authority to direct an eligible investment fund to pay a fixed penalty of five lakh rupees where the fund fails to furnish a required statement, information or document within the time prescribed under the referenced provision; the sanction is discretionary and the text contains no exceptions, mitigation procedures or notice stages in the extract provided.
    Act RulesIncome Tax
    Show AI Summary
    Penalty for inaccurate financial statements made mandatory; reporting institutions face per-account liability and recovery rights from account-holders.
    Section 455 imposes a fixed penalty on persons required to furnish statements under section 508(1) for inaccurate information, failure to correct within the period under section 508(8), or non-compliance with due diligence under section 508(9). It also imposes an additional per-account liability on reporting financial institutions where inaccuracies arise from false or inaccurate information furnished by account-holders, and entitles institutions to recover or retain amounts paid from those account-holders. The provision cross-references section 508 and does not set out adjudicatory or appeal procedures.
    Act RulesIncome Tax
    Show AI Summary
    Penalty for failure to provide electronic payment facilities imposes strict daily liability and removes statutory exception to avoid sanction.
    The provision imposes a continuing daily monetary penalty, to be levied by the Assessing Officer, for failure to provide facilities to accept payments through prescribed electronic modes; the Bill included a proviso allowing avoidance of the penalty on proof of good and sufficient reason, but the enacted text omits that proviso, leaving key definitions, evidentiary standards, and procedural modalities unspecified.
    Act RulesIncome Tax
    Show AI Summary
    Penalty for failure to comply: Assessing Officer may impose monetary penalty equal to sums received unless recipient proves good reasons.
    Section 451 authorises the Assessing Officer to impose a penalty equal to the sum received by a person in contravention of the relevant statutory provision; the earlier Bill expressly allowed escape if the recipient proved "good and sufficient reasons," but the enacted text omits that proviso, leaving the ambit of any exception, standards for evaluation, and the character of assessing discretion unspecified.

    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