SUMMARY OF OFFENCES AND PROSECUTION
Punishment and prosecution of offences are used as a tool for effective enforcement of tax laws and deterring tax avoidance and tax evasions. Imposition of fine and launching of prosecution for any offence under the act can be made only by the magistrate of a court under section 275A to 280. In respect of same default, penalties may also be imposed by the income tax authorities. Listed below are certain offences and prosecution imposed : –
| SECTION | NATURE OF DEFAULT | RIGOROUS PUNISHMENT |
| 275A | Contravention of order made under second proviso of section 132(1) or 132(3) regarding search and seizure | Upto 2 years |
| 275B | Contravention of Section 132(1)(iib) i.e. failure to provide the authorised officer the necessary facility to inspect books | Upto 2 years |
| 276 | Removal, concealment, transfer or delivery of property to thwarf tax recovery | Upto 2 years |
| 276A | Contravention of section 178(1) and 178(3) regarding company in liquidation or parting with any of its assets | 6 Months to 2 years |
| 276AB | Contravention of section 269UC or 268UE or 269UL relating to surrendering of property to Central Government | 6 Months to 2 years |
| 276B | Failure to pay to the Central government tax deducted under Chapter XVII-B or the tax payable by him as required by section 115-O(2) or second proviso to section 194B | 3 Months to 7 years |
| 276BB | Failure to pay tax collected to Central Government as per section 206C | 3 Months to 7 years |
| 276C(1) | Wilful attempt to evade tax, penalty or interest | Tax evaded > 25 Lakhs : 6 months to 7 yearsIn other cases: 3 months to 2 years |
| 276C(2) | Wilful attempt to evade “payment” of tax, penalty or interest | 3 months to 2 years |
| 276CC | Wilful failure to furnish in due time return of income u/s 139(1) or u/s 142(1)(i) or u/s 148 or u/s 153ANote: if return is u/s 139(1) is filed before expiry of assessment year or the tax payable on total income determined after reducing TDS or advance tax does not exceed Rs. 3,000 then no prosecution. | Tax evaded > 25 Lakhs : 6 months to 7 yearsIn other cases: 3 months to 2 years |
| 276D | Wilful failure to produce accounts and documents u/s 142(1)/ 142(2A) | Upto 1 year |
| 277 | False statements in verification | Tax evaded > 25 Lakhs : 6 months to 7 yearsIn other cases: 3 months to 2 years |
| 277A | Falsification of books or documents, etc. to induce or abet any person to evade any tax, penalty or interest chargeable or imposable under the Act. It is not necessary to prove that the other person has actually evaded any tax, penalty or interest chargeable or imposable under the Act for the purpose of establishing the charge under this section. | 3 months to 2 years |
| 278 | Abetment of false return etc. (relating to income chargeable to tax) | Tax evaded > 25 Lakhs : 6 months to 7 yearsIn other cases: 3 months to 2 years |
| 278A | Second and subsequent offences u/s 276B, 276C(1), 276CC, 276DD, 276E, 277, 278 | 6 months to 7 years for every subsequent offence |
| 280(1) | Disclosures of particulars by public servants in contravention of section 138(2), prosecution after previous sanction of central government u/s 280(2) | Upto 6 months |
OFFENCES AND PROSECUTION
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