Summary Chart for Offences and Prosecution under Income Tax Act - Income Tax - Ready Reckoner - Income Tax

Summary Chart for Offences and Prosecution under Income Tax Act Section Nature of offence Minimum period of rigorous imprisonment Maximum period of rigorous imprisonment 275A Dealing with seized assets in contravention of the order made under second proviso to section 132(1) (i.e. deemed or constructive seizure) or 132(3) (restraint order) by the officer conducting the search Any period up to 2 years and fine. 2 years and fine. 275B Failure to afford necessary facility to the authorized officer to inspect books of account or other documents as required under section 132(1)(iib) Any period up to 2 years and fine. 2 years and fine. 276 Fraudulent removal, concealment, transfer or delivery of property to thwart tax recovery being taken in execution of a certificate under the provisions of Second Schedule relating to procedure for recovery of tax Any period up to 2 years and fine. 2 years and fine. 276A Failure to comply with the provisions of section 178(1) and (3) i.e., the liquidators failure to: (i) inform about his appointment within 30 days, or (ii) set aside assets of the company, or (iii) liquidator parts with any asset in contravention of the provisions [Amendment by FA, 2023 - Provided further that no proceeding shall be initiated under this section on or after the 1st day of April, 2023.] Any period up to 2 years which will not be less than 6 months in the absence of special and adequate reasons to the contrary to be recorded in the judgement 2 years 276B Failure to pay to the Government s treasury a) deducted tax at source by him as required by or under the provisions of Chapter XVII-B or (b) the tax payable by him, as required by or under- (i) section 115O(2) ; or (ii) tax payable under proviso to section 194B . (iii) the first proviso to section 194R(1) ; [Amendment by FA, 2023] (iv) the proviso to section 194S(1) ; or'; [Amendment by FA, 2023] (v) section 194BA(2) (w.e.f. 01.07.2023) [Amendment by FA, 2022 word second has been removed from proviso to sec 194B ] 3 months and fine. 7 years and fine 276BB Failure to pay to the credit of Central Government tax collected under section 206C. 3 months and fine. 7 years and fine 276C(1) Willful attempt to evade tax penalty or interest imposable or under reports income under the Act. If amount sought to be evaded or tax on under-reported income exceeds 25,00,000, 6 months and fine otherwise 3 months and fine. If amount sought to be evade exceeds 25,00,000, 7 years and fine otherwise 2 years and fine. 276C(2) Willful attempt in any manner to evade the payment of any tax, penalty or interest 3 months and fine 2 years and fine 276CC Willful failure to file return of income in time under section 139(1) , or in response to notice under section 142(1) or section 148 or section 153A . If tax sought to be evaded exceeds 25,00,000: 6 months and fine. In any other case: 3 months and fine. Note:- No prosecution for failure to furnish the return in due time under section 139(1) if:- (i) the return is filed before the expiry of the assessment year; or (ii) the tax payable by such person not being a company on regular assessment, as reduced by the advance tax or self-assessment tax, if any paid before the expiry of the AY, and any TDS or TCS and advance tax does not exceed ₹ 10,000. [Amendment w.e.f AY 2020-21] [Amendment w.e.f. 01.04.2018, sub-clause (b) not being a company added, the company shall be punishable of rigorous imprisonment, as above, if it does not file return of income.] If tax sought to be evaded exceeds 25,00,000: 7 years and fine. In any other case: 2 years and fine. Note:- No prosecution for failure to furnish the return in due time under section 139(1) if:- (i) the return is filed before the expiry of the assessment year; or (ii) the tax payable on regular assessment, as reduced by TDS and advance tax does not exceed ₹ 3000. 276CCC Willful failure to furnish return of income in search cases by notice given under clause ( a ) of section 158BC, [inserted by the FA, 2024 w.e.f. 01.09.2024 ] Willful failure to furnish return of income in search cases by notice given under clause 158BC(1)( a ) 3 months and fine 3 years and fine 276D Willful failure to produce books of account and documents under section 142(1) or willful failure to comply with a direction to get the accounts audited under section 142(2A) Any period upto 1 year and fine. 1 year and fine. 277 Making a false statement in verification or delivering a false account or statement. If tax evaded exceeds ₹ 25,00,000: 6 months and fine: otherwise: 3 months and fine. If tax evaded exceeds ₹ 25,00,000: 7 years and fine otherwise: 2 years and fine. 277A Willful and with intent to enable any other person to evade any tax or interest or penalty makes or causes to be made any entry or statement which is false and which the first person either knows to be false or does not believe to be true Not less than 3 months with fine 2 years with fine 278 Abetment/inducement to others to make a statement or declaration relating to any income or any fringe benefits which is false and which he either knows to be false or does not believe to be true or to commit an offence u/s 276C(1) If the amount of tax, penalty or interest which would have been evaded, if the declaration, account or statement had been accepted as true exceeds ₹ 25 lakhs, 6 months; Otherwise, 3 months fine If it exceeds 25 lakhs, 7 years; Otherwise 2 years and fine 278A Punishment for second and subsequent offences u/s 276B , 272C(1) , 276CC , 277 or 278 or section 276BB [ inserted by the FA, 2022 ] 6 months for every offence and fine 7 years for every offence and fine 280 ( 1) Disclosure of particulars by public servants in contravention of section 138(2) (prosecution to be instituted with the approval of Central government) Up to 6 months and fine 6 months and fine