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 »
Prosecution for contravention of the order restricting the handling of seized assets [Section 275A] Nature of Default During search operations, if it is not practicable to seize any valuable article, thing, book of account or document due to physical constraints, the authorized officer may issue an order directing the person not to remove or deal… Read More »
Prosecution for Offences The income-tax authorities can initiate prosecution for offences specified under various sections. Imprisonment and fines vary depending on the nature of the offence. Key Offences and Punishments Section Description Period of Imprisonment 275A Contravention of the order restricting the handling of seized assets Up to 2 years (and fine) 275B Non-compliance with… Read More »
Time Limit for Completion of Penalty Proceedings Section 275 of the Income Tax Act specifies the time limits within which the tax authorities must pass penalty orders. The prescribed time limits vary depending on the appellate or revision status of the related assessment or other proceedings. Cases where assessment or other order is not subject to… Read More »
Faceless Penalty Scheme Scope and Applicability The scheme applies to penalty proceedings relating to specified territorial areas, persons, income, or cases. The following are excluded: Penalty proceeding in cases assigned to Central Charges, International Tax Charges, TDS Charges [Order F. NO. 187/4/2021-ITA-I, dated 20-1-2021], Penalty proceedings arising/pending in the Investigation Wing, and DG (Risk Assessment)… Read More »
Procedure to Impose Penalty Opportunity of Being Heard Before imposing any penalty, the assessee must be given a reasonable opportunity of being heard. Approval Requirement for Imposing Penalty Income-tax Officer requires prior approval of the Joint Commissioner if the proposed penalty exceeds ₹10,000. Assistant Commissioner or Deputy Commissioner requires prior approval of the Joint Commissioner… Read More »