Amendment made in the Income-tax Act by the Finance Act, 2012 in respect of prosecution proceeding under the Act - Income Tax - F.No. 285/14/2013-IT(lnv.)/56

F.No. 285/14/2013-IT(lnv.)/56 Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes E-2, Ground Floor, ARA Centre, New Delhi Dated: 21.08.2013 To Sh. H.C. Jain, DIT (l CI), Mumbai Convener, Committee on new Prosecution Manual, Sir, Sub: Amendment made in the Income-tax Act by the Finance Act, 2012 in respect of prosecution proceeding under the Act Kindly refer to the above. This is in continuation to earlier communications on the formation of committee to suggest changes in the prosecution manual. 2. The undersigned has been directed to inform that some changes have been made for raising monetary limit in the Income Tax Act under chapter XXII- (offences and prosecution) with effect from 01.07.2012. These include the following: Section 276C - Wilful attempt to evade tax, etc. 1. (i) In a case where the amount sought to be evaded, exceeds (twenty-five) hundred thousand 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; Section 276CC - Failure to furnish returns of income (i). In a case where the amount of tax, which would have been evaded if the failure had not been discovered, exceeds (twenty-five) hundred thousand 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; Section 277- False statement in verification, etc. (i) In a case where the amount of tax, which would have been evaded if the statement or account had been accepted as true, exceeds (twenty-five) hundred thousand 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; Section 278 - Abetment of false return, etc. (i). In a case where the amount of tax, penalty or interest which would have been evaded, if the declaration, account or statement had been accepted as true, or which is wilfully attempted to be evaded, exceeds (twenty-five) hundred thousand 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; 3. The monetary limit, it is noticed, has been raised from one lakh to twenty five lakhs and the above changes have come into effect w.e.f 01.07.2012. 4. In view of the above, I am directed to request you to take into account the changes made by Finance Act, 2012 in the Income Tax Act under Chapter XXII while recommending changes in Prosecution Manual, 2009. Any other change made in the Act may also be suitably incorporated. Yours faithfully, (Yatendra Singh) Dy. Director of Income Tax, (Prosecution), CBDT, New Delhi