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, investigation, or arrest requires court permission.
- Exception
As per CBDT Circular No. 24/2019, dated 09.09.2019:
Where the amount sought to be evaded or tax on under-reported income is Rs. 25 lakh or less, prosecution shall be initiated only with prior approval of a collegium of two officers of CCIT/DGIT rank.
Prosecution shall not be launched unless the order imposing penalty is confirmed by the ITAT.
- Prosecution for Subsequent Offences
For second and subsequent convictions, rigorous imprisonment of 6 months to 7 years and with fine shall apply.
- Penalty for under-reporting of income
Under-reporting of income attracts penalty under Section 270A.
- Relaxation from Prosecution
Immunity from prosecution may be granted by the Principal Commissioner/Commissioner, but it will be withdrawn if the assessee fails to meet the required conditions and according to CBDT guidelines, the offence under this provision is compoundable.