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 containing false entries or statements;
➢ Making or causing to be made false entries or statements;
➢ Wilfully omitting or causing omission of relevant entries or statements;
➢ Creating circumstances that facilitate evasion of tax, penalty, interest, or payment.
Period of Imprisonment
➢ Where the tax sought to be evaded or tax on under-reported income exceeds Rs. 25 lakh: rigorous imprisonment of 6 months to 7 years and with fine;
➢ In other cases: rigorous imprisonment of 3 months to 2 years and with fine.