Prosecution for making false statements in verification [Section 277] Nature of Default Prosecution shall be initiated where a person: Makes a false statement in any verification under the Act, or Delivers an account or statement which is false and which he knows or believes to be false, or does not believe to be true. Such… Read More »
Prosecution for failure to produce accounts and documents [Section 276D] Nature of Default Prosecution may be initiated if a person wilfully: Fails to produce, or causes failure in producing, books of accounts or documents as required under a notice issued under section 142(1); or Fails to get accounts audited or inventory valued in compliance with directions… Read More »
Prosecution for non-filing of return post-search/requisition on or after 01-09-2024 [Section 276CCC] Nature of Default If a search is initiated under Section 132 or a requisition is made under Section 132A on or after 01-09-2024, and the assessee fails to file a return in response to a notice issued under Section 158BC(1)(a), prosecution can be launched under this section. Period… Read More »
Prosecution for failure to furnish return of income [Section 276CC] Nature of Default Prosecution may be initiated if a person fails to furnish return of income: Under section 139(1); In response to a notice under section 142(1)(i); In response to a notice under section 148 for reassessment; In response to a notice under section 153A in case of search. Such offence… Read More »
Wilful attempt to evade payment of tax [Section 276C(2)] Nature of Default Prosecution shall be initiated where there is wilful attempt to evade payment of tax, penalty, or interest. Period of Imprisonment Punishable with rigorous imprisonment of 3 months to 2 years and with fine. Non-cognizable Offence The offence is non-cognizable under section 279A, meaning FIR,… Read More »
Prosecution for wilful attempt to evade tax Wilful attempt to evade tax [Section 276C(1)] Nature of Default Prosecution shall be initiated if a person wilfully attempts to evade any tax, penalty, or interest chargeable or imposable under the Act or under-reports his income. Meaning of wilful attempt Includes the following: ➢ Possessing or controlling books/documents… Read More »
Prosecution for failure to pay TCS [Section 276BB] Nature of Default Prosecution applies when a person collects tax under section 206C but fails to deposit it wholly or partly to the Central Government. However, no prosecution shall be initiated if the TCS amount is deposited on or before the due date of filing the TCS statement. If… Read More »
Prosecution for failure to pay TDS, dividend distribution tax, or ensure tax payment on income in kind [Section 276B] Nature of Default Prosecution may be initiated in the following cases: o Failure to pay TDS; o Failure to pay dividend distribution tax on dividends declared, distributed, or paid on or before 31.03.2020; o Failure to… Read More »
Prosecution for concealment or transfer of property to prevent tax recovery [Section 276] Nature of Default Prosecution is attracted when a person fraudulently removes, conceals, transfers, or delivers any property or interest therein to prevent such property from being attached or taken in execution of a certificate for the recovery of tax Punishment The offence… Read More »
Prosecution for non-compliance with search and seizure provisions [Section 275B] Nature of Default If a person having possession or control of books of account or other documents, including those maintained in electronic form, fails to provide necessary facility for their inspection during search and seizure, prosecution may be launched under this provision. Prosecution requires prior… Read More »