The Income-Tax Act, 1961

Chapter XXII

Offences and Prosecutions

⁵[275A. Contravention of order made under sub-section (3) of section 132.-

Whoever contravenes any order referred to in ⁶[the second proviso to sub-section (1) or] sub-section (3) of section 132 shall be punishable with rigorous imprisonment which may extend to two years and shall also be liable to fine.]

5. Ins. by Act 1 of 1965, s. 4 (w.e.f. 12-3-1965).

6. Ins. by Act 12 of 1990, s. 47 (w.e.f. 1-4-1990).

¹[275B. Failure to comply with the provisions of clause (iib) of sub-section (1) of section 132.-

If a person who is required to afford the authorised officer the necessary facility to inspect the books of account or other documents, as required under clause (iib) of sub-section (1) of section 132, fails to afford such facility to the authorised officer, he shall be punishable with rigorous imprisonment for a term which may extend to two years and shall also be liable to fine.]

1. Ins. by Act 20 of 2002, s. 107 (w.e.f. 1-6-2002).

²[276. Removal, concealment, transfer or delivery of property to thwart tax recovery.-

Whoever fraudulently removes, conceals, transfers or delivers to any person, any property or any interest therein, intending thereby to prevent that property or interest therein from being taken in execution of a certificate under the provisions of the Second Schedule shall be punishable with rigorous imprisonment for a term which may extend to two years and shall also be liable to fine.]

2. Ins. by Act 4 of 1988, s. 117 (w.e.f. 1-4-1989).

³[276A. Failure to comply with the provisions of sub-sections (1) and (3) of section 178.-

If a person 4*** -

(i) fails to give the notice in accordance with sub-section (1) of section 178; or

(ii) fails to set aside the amount as required by sub-section (3) of that section; or

(iii) parts with any of the assets of the company or the properties in his hands in contravention of the provisions of the aforesaid sub-section, he shall be punishable with rigorous imprisonment for a term which may extend to two years:

Provided that in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the court, such imprisonment shall not be for less than six months.]

3. Ins. by Act 10 of 1965, s. 58 (w.e.f. 1-4-1965).

276AA. [Failure to comply with the provisions of section 269AB or section 269-I].-Omitted by the Finance Act, 1986 (23 of 1986), s. 37 (w.e.f. 1-10-1986). Original section was inserted by the Incometax (Amendment) Act, 1981 (22 of 1981), s. 10 (w.e.f. 1-7-1982).

⁵[276AB. Failure to comply with the provisions of sections 269UC, 269UE and 269UL.-

Whoever 4*** fails to comply with the provisions of section 269UC or fails to surrender or deliver possession of the property under sub-section (2) of section 269UE or contravenes the provisions of subsection (2) of section 269UL shall be punishable with rigorous imprisonment for a term which may extend to two years and shall also be liable to fine:

Provided that in the absence of special and adequate reasons to the contrary to be recorded in the judgment of the court, such imprisonment shall not be for less than six months.]

4. The words ", without reasonable cause or excuse," omitted by Act 46 of 1986, s. 27 (w.e.f. 10-9-1986).

5. Ins. by Act 23 of 1986, s. 36 (w.e.f. 13-5-1986).

¹[²[276B. Failure to pay tax to the credit of Central Government under Chapter XII-D or XVII-B.-

If a person fails to pay to the credit of the Central Government,-

(a) the tax deducted 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) sub-section (2) of section 115-O; or

(ii) the second proviso to section 194B, he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.]

1. Subs. by Act 26 of 1997, s. 56, for section 276B (w.e.f. 1-6-1997).

2. Subs. by Act 41 of 1975, s. 68, for section 276B and 276C (w.e.f. 1-10-1975). Earlier section 276C was inserted by Act 42 of 1970, s. 52 (w.e.f. 1-4-1971) and section 276B was inserted by Act 19 of 1968, s. 21 (w.e.f. 1-4-1968) and later on section 276B amended by Act 46 of 1986, s. 27 (w.e.f. 10-9-1986).

³[276BB. Failure to pay the tax collected at source.-

If a person fails to pay to the credit of the Central Government, the tax collected by him as required under the provisions of section 206C, he shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to seven years and with fine.]

3. Ins. by Act 26 of 1988, s. 46 (w.e.f. 1-6-1988).

276C. Wilful attempt to evade tax, etc.-

(1) If a person wilfully attempts in any manner whatsoever to evade any tax, penalty or interest chargeable ⁴[or imposable, or under reports his income,] under this Act, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this Act, be punishable,-

(i) in a case where the amount sought to be evaded ⁵[or tax on under-reported income] exceeds ⁶[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;

(ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to ⁷[two years] and with fine.

(2) If a person wilfully attempts in any manner whatsoever to evade the payment of any tax, penalty or interest under this Act, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this Act, be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to ⁸[two years] and shall, in the discretion of the court, also be liable to fine.

Explanation.-For the purposes of this section, a wilful attempt to evade any tax, penalty or interest chargeable or imposable under this Act or the payment thereof shall include a case where any person-

(i) has in his possession or control any books of account or other documents (being books of account or other documents relevant to any proceeding under this Act) containing a false entry or statement; or

(ii) makes or causes to be made any false entry or statement in such books of account or other documents; or

(iii) wilfully omits or causes to be omitted any relevant entry or statement in such books of account or other documents; or

(iv) 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 Act or the payment thereof.

4. Subs. by Act 28 of 2016, s. 109, for "or imposable" (w.e.f. 1-4-2017).

5. Ins. by s. 109, ibid. (w.e.f. 1-4-2017).

6. Subs. by Act 23 of 2012, s. 106, for "one hundred thousand rupees" (w.e.f.1-7-2012).

7. Subs. by s. 106, ibid., for "three years" (w.e.f. 1-7-2012).

276CC. Failure to furnish returns of income.-

If a person wilfully fails to furnish in due time ¹[the return of fringe benefits which he is required to furnish under sub-section (1) of section 115WD or by notice given under sub-section (2) of the said section or section 115WH or] the return of income which he is required to furnish under sub-section (1) of section 139 or by notice given under ²[clause (i) of sub-section (1) of section 142] or ³[section 148 or section 153A,] 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 ⁴[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;

(ii) in any other case, with imprisonment for a term which shall not be less than three months but which may extend to ⁵[two years] and with fine:

Provided that a person shall not be proceeded against under this section for failure to furnish in due time the ⁶[return of fringe benefits under sub-section (1) of section 115WD or return of income under sub-section (1) of section 139]-

(i) for any assessment year commencing prior to the 1st day of April, 1975; or

(ii) for any assessment year commencing on or after the 1st day of April, 1975, if-

(a) the return is furnished by him before the expiry of the assessment year; or

(b) the ⁷[tax payable by such person, not being a company,] on the total income determined on regular assessment, as reduced by the advance tax, if any, paid, and any tax deducted at source, does not exceed three thousand rupees.]]

1. Ins. by Act 18 of 2005, s. 62 (w.e.f. 1-4-2006).

2. Subs. by Act 4 of 1988, s. 126, for "sub-section (2) of section 139" (w.e.f. 1-4-1989).

3. Subs. by Act 32 of 2003, s. 97, for "section 148" (w.e.f. 1-6-2003).

4. Subs. by Act 23 of 2012, s. 107, "one hundred thousand rupees" (w.e.f. 1-7-2012).

5. Subs. by s. 107, ibid., for "three years" (w.e.f. 1-7-2012).

6. Subs. by Act 18 of 2005, s. 62, for "return of income under sub-section (1) of section 139" (w.e.f. 1-4-2006).

7. Subs. by Act 13 of 2018, s. 54, for "tax payable by him" (w.e.f. 1-4-2018).

⁸[276CCC. Failure to furnish return of income in search cases.-

If a person wilfully fails to furnish in due time the return of total income which he is required to furnish by notice given under clause (a) of section 158BC, he shall be punishable with imprisonment for a term which shall not be less than three months but which may extend to three years and with fine:

Provided that no person shall be punishable for any failure under this section in respect of search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A, after the 30th day of June, 1995 but before the 1st day of January, 1997.]

8. Ins. by Act 14 of 1997, s. 10 (w.e.f. 1-1-1997).

⁹[276D. Failure to produce accounts and documents.-

If a person wilfully fails to produce, or cause to be produced, on or before the date specified in any notice served on him under sub-section (1) of section 142, such accounts and documents as are referred to in the notice ¹⁰[or wilfully fails to comply with a direction issued to him under sub-section (2A) of that section], he shall be punishable with rigorous imprisonment for a term which may extend to one year 1¹[and with fine].]

9. Ins. by Act 42 of 1970, s. 52 (w.e.f. 1-4-1971).

10. Ins. by Act 41 of 1975, s. 69 (w.e.f. 1-4-1976).

11. Subs. by Act 25 of 2014, s. 74, for "or with fine equal to a sum calculated at a rate which shall not be less than four rupees or more than ten rupees for every day during which the default continues, or with both " (w.e.f. 1-10-2014).

276DD. [Failure to comply with the provisions of section 269SS].-Omitted by the Direct Tax Laws (Amendment) Act, 1987 (4 of 1987), s. 119 (w.e.f. 1-4-1989). Earlier it was inserted by the Finance Act (21 of 1984), s. 31 (w.e.f. 1-4-1984) and later on amended by the Taxation Laws (Amendments and Miscellaneous Provisions) Act (46 of 1986), s. 27 (w.e.f. 10-9-1986).

276E. [Failure to comply with the provisions of section 269T].-Omitted by s. 119, ibid., (w.e.f. 1-4-1989). Earlier it was inserted by the Income-Tax (Second Amendment) Act (38 of 1981), s. 4 (w.e.f. 11-7-1981) and later on amended by the Taxation Laws (Amendments and Miscellaneous Provisions) Act (46 of 1986), s. 27 (w.e.f. 10-9-1986).

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