Clause 241 - Wilful attempt to evade tax. - Direct Taxes Code, 2010

Wilful attempt to evade tax. 241. (1) If a person wilfully attempts in any manner whatsoever to evade any tax, penalty or interest chargeable or imposable under this Code, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this Code, be punishable,— (i) in a case where the amount sought to be evaded exceeds one lakh rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine which shall not be less than fifty thousand rupees but which may extend to five lakh rupees; (ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and with fine which shall not be less than twenty-five thousand rupees but which may extend to three lakh rupees. (2) If a person wilfully attempts in any manner whatsoever to evade the payment of any tax, penalty or interest under this Code, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this Code, be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and shall, in the discretion of the court, also be liable to fine. (3) For the purposes of this section, a wilful attempt to evade any tax, penalty or interest chargeable or imposable under this Code or the payment thereof shall include a case where any person— (a) has in his possession, or control, any books of account or other documents, relevant to any proceeding under this Code, containing a false entry or statement; (b) makes, or causes to be made, any false entry, or statement, in such books of account or other documents; (c) wilfully omits, or causes to be omitted, any relevant entry, or statement, in such books of account or other documents; or (d) causes any other circumstance to exist which will have the effect of enabling such person to evade any tax, penalty or interest chargeable or imposable under this Code, or the payment thereof.