Clause 242 - Failure to furnish returns of tax bases. - Direct Taxes Code, 2010

Failure to furnish returns of tax bases. 242. (1) If a person wilfully fails to furnish in due time the return of tax bases— (a) under sub-section (1) of section 144, or in response to a notice given under section 146; or (b) in response to a notice given under section 159, he shall be punishable— (i) in a case where the amount of tax which would have been evaded, if the failure had not been discovered, 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 one hundred rupees but which may extend to five hundred rupees, for every day during which the default continues; (ii) in any other case, with 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 fifty rupees but which may extend to three hundred rupees, for every day during which the default continues. (2) A person shall not be proceeded against under this section for failure to furnish in due time the return of tax bases— (a) under sub-section (1) of section 144, or in response to a notice given under section 146, if the return is furnished before the expiry of the financial year in which such return is due; (b) in response to a notice given under section 159, if the return is filed before the expiry of the period specified in the said notice; or (c) the tax payable by the person on the tax bases determined on assessment or re-assessment as reduced by advance tax, or tax collected or deducted at source, does not exceed twenty-five thousand rupees.