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
    Evolution of Executive Scheme-Making Powers in Indian Income Tax Law : Clause 532 of the Income Tax ...
    Withdrawal of Statutory Approvals under Indian Income Tax Law : Clause 529 of the Income Tax Bill, 2...
    Legal Perspectives on Condonation of Delay in Income Tax Approvals : Clause 528 of Income Tax Bill, ...
    Executive Discretion and Tax Incentives in India's Mineral Oil Sector : Clause 527 of the Income Tax...
    Immunity and Jurisdictional Bar in Tax Administration : Clause 526 of the Income Tax Bill, 2025 Vs. ...
    Authorisation and Assessment in Multi-Person Search Cases : Clause 525 of the Income Tax Bill, 2025 ...
    Rebuttable Presumptions in Tax Searches : Clause 524 of the Income Tax Bill, 2025 Vs. Section 292C o...
    Deeming Service of Notice in Tax Proceedings Under Income Tax Law : Clause 523 of the Income Tax Bil...
    Technicalities vs. Substantive Justice : Clause 522 of the Income Tax Bill, 2025 Vs. Section 292B of...
    Exclusion of Probationary Relief for Tax Offenders : Clause 521 of the Income Tax Bill, 2025 Vs. Sec...
    Jurisdictional Thresholds for Tax Offence Trials : Clause 520 of the Income Tax Bill, 2025 Vs. Secti...
    Immunity from Prosecution under Income Tax Law : Clause 519 of the Income Tax Bill, 2025 Vs. Section...
    Practical Impact of Indemnity Provisions in Indian Tax Statutes : Clause 518 of the Income Tax Bill,...
    Legal Mandate for Receipts in Indian Tax Law : Clause 517 of the Income Tax Bill, 2025 Vs. Section 2...
    Evolution of Rounding Off Provisions regarding tax payable in Indian Tax Law : Clause 516 of the Inc...
    Legal Framework of Rounding Off Total Income in India tax Law : Clause 516 of the Income Tax Bill, 2...
    The Right of Representation in Income Tax Proceedings : Clause 515 of the Income Tax Bill, 2025 Vs. ...
    Analysis of Registered Valuer Representation in Income Tax Proceedings : Clause 513 of the Income Ta...
    Public Disclosure of Tax Offenders : Clause 512 of the Income Tax Bill, 2025 Vs. Section 287 of the ...
    Legal Framework for International Group Reporting : Clause 511 of the Income Tax Bill, 2025 Vs. Sect...
❯❯
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 RulesBills
    Show AI Summary
    Power to frame schemes expands executive authority to enable faceless, technology-driven tax administration and modify statutory application.
    Clause 532 grants the Central Government authority to make schemes for any purpose of the Act to enhance efficiency, transparency and accountability by eliminating taxpayer interface and optimising resources, and to issue notifications modifying the application of any provision of the Act to give effect to such schemes; it also permits amendment of schemes under the Income-tax Act, 1961 and requires that notifications be laid before each House of Parliament.
    Act RulesBills
    Show AI Summary
    Withdrawal of approvals: authorities may rescind statutory tax approvals after recording reasons and giving a fair hearing.
    Clause 529 authorises the Central Government, the Board, or income-tax authorities to withdraw any approval under the Act at any time after recording reasons and giving the assessee a reasonable opportunity of being heard, even if the enabling provision lacks an express withdrawal clause. The provision mandates recorded reasons and a hearing but leaves "approval" undefined, does not specify substantive grounds for withdrawal, and does not prescribe a limitation period, which may raise uncertainty and prompt judicial scrutiny of procedural adequacy.
    Act RulesBills
    Show AI Summary
    Condonation of delay: authority may excuse late tax approvals for sufficient cause, subject to discretionary review and safeguards.
    Clause 528 permits the Central Government or the Board to condone delays in obtaining approvals required before a specified date under the Act for "sufficient cause," vesting discretionary power in the same authority to excuse late applications across a broad range of approvals while leaving "sufficient cause," procedural steps, time limits and appeal mechanisms undefined.
    Act RulesBills
    Show AI Summary
    Executive discretion in tax exemptions for mineral oil sector enables tailored fiscal relief to investors and service providers.
    Clause 527 vests the Central Government with discretionary power to grant exemptions, reductions or other modifications in income tax for persons engaged in prospecting, extraction or production of mineral oils, including operators, service providers, suppliers and their employees; notifications must be laid before Parliament and key terms like "mineral oil" and "status" are defined or cross referenced in the Bill.
    Act RulesBills
    Show AI Summary
    Bar on civil suits prevents civil court challenges to tax proceedings, preserving exclusive statutory remedies and good faith immunity.
    The provision bars any civil suit to set aside or modify "any proceeding taken or order made" under the Act and grants immunity to the Government and its officers for acts done or intended to be done in good faith, channeling challenges to the statutory appellate and revisionary framework while preserving writ review for ultra vires, mala fide, or constitutional breaches.
    Act RulesBills
    Show AI Summary
    Authorisation for multi-person searches: single authorisations allowed, but assessments must be made separately for each person.
    Clause 525 permits a single search or requisition authorisation to name multiple persons without requiring separate instruments, and provides that such joint naming does not, by itself, constitute authorisation against an AOP or BOI. Notwithstanding a consolidated authorisation, assessment or reassessment must be made separately in the name of each person mentioned, preserving individualized tax liability determinations while allowing administrative consolidation of search procedures.
    Act RulesBills
    Show AI Summary
    Rebuttable presumption in tax searches shifts evidentiary burden to taxpayers and explicitly covers virtual digital assets.
    Clause 524 establishes a rebuttable presumption that items found in search or survey-books, documents, money, bullion, jewellery, other valuables and virtual digital assets-belong to the person in whose possession they were found; that contents of books and documents are true; that signatures and handwriting are authentic; and that stamped, executed or attested documents were duly executed, with identical presumptions applying to items requisitioned to officers as if discovered in a search.
    Act RulesBills
    Show AI Summary
    Deeming validity of notice: participation or cooperation bars later objections unless raised before assessment completion.
    Clause 523 creates a deeming fiction that an assessee's appearance in proceedings or co-operation in an inquiry shall be treated as valid and timely service of any statutory notice, and it precludes the assessee from later objecting that the notice was not served, not timely served, or served improperly; however, this preclusion does not apply where the assessee raises the objection before completion of the assessment or reassessment.
    Act RulesBills
    Show AI Summary
    Substantial compliance preserves tax proceedings despite minor procedural errors when the instrument fulfils legislative intent.
    Clause 522 preserves the validity of returns, assessments, notices, summonses and other proceedings despite clerical, typographical or similar procedural defects, provided the document or action is in substance and effect in conformity with the intent and purposes of the Act; it does not cure defects that go to jurisdiction, authority, limitation, or breaches of natural justice, and mirrors Section 292B to maintain continuity of judicial interpretation and application.
    Act RulesBills
    Show AI Summary
    Exclusion of probationary relief bars adult tax offenders from probationary provisions, preserving minors' exception and updating criminal code reference.
    The clause mandates that the Probation of Offenders Act and the analogous provision in the new criminal procedure code shall not apply to persons convicted under the Income Tax Bill, 2025, except for those under eighteen, thereby removing judicial discretion for adult tax offenders, updating statutory references, and preserving a minors' exception while raising procedural questions on age determination and scope.
    Act RulesBills
    Show AI Summary
    Jurisdictional threshold: income tax offences must be tried by a Judicial Magistrate of the first class, altering forum nomenclature.
    Clause 520 mandates that no court inferior to a Judicial Magistrate of the first class shall try any offence under the Income Tax Bill, 2025, creating a uniform jurisdictional threshold for all tax offences. The provision modernizes terminology compared with Section 292 of the 1961 Act by omitting presidency magistrates, aligning with the CrPC framework and metropolitan magistrates' equivalence, while leaving potential ambiguities about special statute courts and transitional application. Its practical effect is to require complaints be filed before competent magistrates and to enable jurisdictional challenges where proceedings are instituted in inferior forums.
    Act RulesBills
    Show AI Summary
    Immunity from prosecution: conditional grants require full and true disclosure and are revocable if falsehood or concealment is found.
    Immunity from prosecution allows the Central Government to grant discretionary, conditional immunity to persons concerned in concealment of income or tax evasion in exchange for a full and true disclosure, with written reasons required for the grant; acceptance limits prosecution and penalty to the scope specified, while failure to fully comply permits the government to record a finding and withdraw immunity, rendering the person liable to trial and penalty as if immunity had never been granted.
    Act RulesBills
    Show AI Summary
    Indemnity for withholding agents protects deductors from civil claims when acting lawfully under the tax statute.
    Clause 518 of the Income Tax Bill, 2025 provides a statutory indemnity for persons who deduct, retain, or pay tax in pursuance of the tax statute in respect of income belonging to another person, serving as a defence against civil claims by the income recipient where the agent acts lawfully; the protection is conditional on actions being within the scope of the statute and leaves unresolved issues about consequential losses, claim procedures, and interaction with other legal remedies.
    Act RulesBills
    Show AI Summary
    Receipt obligation: mandatory issuance of receipts for any tax money paid or recovered, securing payment evidence and taxpayer protection.
    The provision mandates that a receipt shall be given for any money paid or recovered under the Income Tax Bill, 2025, covering voluntary payments and enforced recoveries under the Act. The clause is mandatory but silent on form, content, timing, issuing authority, mode of delivery, and consequences for non-issuance; subordinated rules and administrative practice-including electronic acknowledgments-are expected to fill these operational gaps. The receipt serves as an acknowledgement and evidentiary record rather than an automatic discharge of liability.
    Act RulesBills
    Show AI Summary
    Rounding off rules: ignore paise then round to nearest ten rupees, making the rounded figure legally operative.
    The provision applies rounding to computed total income and to amounts payable or refundable by first ignoring paise and then rounding the rupee amount to the nearest multiple of ten rupees-rounding up where the units digit is five or more and rounding down where it is less than five-and declares the rounded amount to be the deemed operative total income or amount payable or refundable for all purposes under the Act.
    Act RulesBills
    Show AI Summary
    Rounding of tax amounts: unified rule mandates nearest multiple rounding for total income, payable and refundable amounts.
    Clause 516 prescribes a mandatory two-step rounding mechanism: ignore any paise, then round the rupee amount to the nearest multiple of ten-rounding up if the last digit is five or more and down if less than five-and deems the rounded figure to be the amount of total income, amount payable, or amount refundable for all purposes under the Act.
    Act RulesBills
    Show AI Summary
    Right of representation: statutory authorisation and disqualification framework balancing access to representation with safeguards.
    The statute permits an assessee to appear by an authorised representative across all proceedings while preserving mandatory personal attendance for oath examination; it defines eligible representatives (including professionals, bank officers, relatives, legacy practitioners and any persons as prescribed), enumerates exhaustive exclusions and disqualifications to prevent conflicts of interest, distinguishes disciplinary regimes for professionals and nonprofessionals (with Rule 52 designating prescribed tax authorities to disqualify nonprofessionals), and mandates procedural safeguards including a hearing and appeal mechanism, while carrying forward prior disqualifications.
    Act RulesBills
    Show AI Summary
    Registered valuer representation enables technical valuation expertise in tax proceedings, subject to personal-examination exception and updated registration framework.
    Clause 513 grants an assessee the discretionary right to attend valuation-related proceedings before income-tax authorities or the Appellate Tribunal through a "registered valuer," excludes cases where personal attendance is required for examination on oath or affirmation, and defines "registered valuer" by reference to section 514 of the Bill, thereby creating a self-contained regime that modernizes registration, oversight, and professional standards for valuers.
    Act RulesBills
    Show AI Summary
    Public disclosure of tax offenders can deter non-compliance while imposing reputational consequences under discretionary publication powers.
    Clause 512 empowers the Central Government to publish names and particulars of assessees when it considers such publication necessary or expedient in the public interest, subject to a safeguard that penalty-related publication await exhaustion or non-pursuit of appellate remedies, and permits publication of partners, directors and other associated persons if circumstances justify it. The clause modernises language and cross-references from Section 287 of the 1961 Act while preserving substantive continuity, raising interpretive concerns about the breadth of "particulars" and the subjectivity of "public interest."
    Act RulesBills
    Show AI Summary
    Country-by-Country reporting requires multinational groups to submit consolidated jurisdictional tax and economic data for risk assessment.
    Clause 511 mandates Country-by-Country (CbC) reporting by parent entities or alternate reporting entities resident in India and requires Indian constituent entities to notify the tax authority of the parent or ARE. It prescribes report contents-aggregate jurisdictional financial and economic indicators, constituent identification, and business activities-provides a secondary filing route where the parent's jurisdiction lacks filing or exchange, allows designation of a single Indian filer, sets a revenue threshold for applicability, and grants verification powers to the authority, with procedural details to be prescribed.

    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