Offences and Prosecution
Sections 473-498, connected Rules prosecution, compounding and Special Court procedures, Forms prescribed prosecution and compounding records, Finance Act 2026 amendments, transition mapping, practical controls, cases and professional Q&A.
Decision path
Person, event and period
Section and Schedule
Rule, Form, authority
Books, portal, bank, approvals
Correction, stay, appeal, defence
Section navigation: s. 473 s. 474 s. 475 s. 476 s. 477 s. 478 s. 479 s. 480 s. 481 s. 482 s. 483 s. 484 s. 485 s. 486 s. 487 s. 488 s. 489 s. 490 s. 491 s. 492 s. 493 s. 494 s. 495 s. 496 s. 497 s. 498
What this chapter governs
26 provisions: 473-498.
prosecution, compounding and Special Court procedures; prescribed prosecution and compounding records. Current electronic schemas must be checked at filing.
1961 Act sections 275A-280D, as amended over time; apply current 2025 Act punishment bands and Finance Act 2026 substitutions.
Contravention of order made during search action
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Failure to afford facility for inspection of books of account during search
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Removal, concealment, transfer or delivery of property to prevent tax recovery
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Failure to pay tax to credit of Central Government under Chapter XIX-B
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Failure to pay tax collected at source
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Wilful attempt to evade tax, etc.
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Failure to furnish returns of income
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Failure to furnish return of income in search cases
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Failure to comply with a direction of special audit or valuation
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
False statement in verification, etc.
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Falsification of books of account or document, etc.
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Abetment of false return, etc.
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Punishment for second and subsequent offences
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Punishment not to be imposed in certain cases
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Offences by companies
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Offences by Hindu undivided family
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Presumption as to assets, books of account, etc., in certain cases
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Presumption as to culpable mental state
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Prosecution to be at instance of specified senior income-tax authority
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Certain offences to be non-cognizable
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Proof of entries in records or documents
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Disclosure of particulars by public servants
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Designation of Special Courts
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Offences triable by Special Court
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Trial of offences as summons case
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Application of Bharatiya Nagarik Suraksha Sanhita, 2023 to proceedings before Special Court
Statutory function
Creates a criminal offence or regulates prosecution, presumptions, sanction, compounding or trial.
Professional decode
Separate offence ingredients from civil penalty; preserve evidence on wilfulness, knowledge, due diligence, sanction, limitation, compounding and corporate responsibility.
Connected compliance layer
| Layer | Coverage | Control |
|---|---|---|
| Rules | prosecution, compounding and Special Court procedures | Use exact notified text, amendments and corrigenda. |
| Forms | prescribed prosecution and compounding records | Confirm live e-filing schema, signing authority and acknowledgement. |
| Notifications | Rates, notified persons, schemes, exemptions, reporting and recovery | Check Gazette number, effective date and supersession. |
| Circulars / instructions | Administrative guidance and compounding / processing instructions | Apply only within lawful scope and after section 536 mapping. |
18 practical cases
A practical file raises search restraint breach. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises inspection failure. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises asset concealment. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises TDS deposit default. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises TCS deposit default. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises tax evasion. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises return failure. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises search return. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises special audit. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises false verification. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises book falsification. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises abetment. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises repeat offence. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises reasonable cause. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises company offence. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises HUF offence. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises compounding. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
A practical file raises Special Court. Facts span identity, tax year, transaction date, amount, statutory role and electronic records.
Approach: Apply the Act first, then the connected Rule/Form and current Gazette instrument. Reconcile evidence, timing, authority, computation and remedy.
Control: Create a dated evidence index, responsibility matrix and limitation calendar; obtain professional advice where litigation or prosecution risk exists.
36 questions
The enacted section and applicable Schedule control first; then the notified Rules, current forms, valid Gazette instruments and binding judicial law. Portal text is operational guidance, not a substitute for law.
No. Map it to the 2025 Act, test section 536 savings, consistency and later supersession before relying on it.
Notice/order, service trail, computation, books/ledger, bank/challan records, prescribed statements/forms, correspondence, approvals and a limitation calendar.
No. Payment may stop further interest or support reasonable cause, but filing, reporting, penalty or prosecution consequences may remain.
Use the consolidated Act wording and effective-date footnotes; do not apply the pre-substitution text to an action governed by the amended provision.
Reconfirm the live Gazette, current form/schema, annual Finance Act, jurisdictional case law and transaction-specific facts.
Section 473, Contravention of order made during search action, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 474, Failure to afford facility for inspection of books of account during search, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 475, Removal, concealment, transfer or delivery of property to prevent tax recovery, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 476, Failure to pay tax to credit of Central Government under Chapter XIX-B, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 477, Failure to pay tax collected at source, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 478, Wilful attempt to evade tax, etc., should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 479, Failure to furnish returns of income, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 480, Failure to furnish return of income in search cases, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 481, Failure to comply with a direction of special audit or valuation, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 482, False statement in verification, etc., should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 483, Falsification of books of account or document, etc., should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 484, Abetment of false return, etc., should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 485, Punishment for second and subsequent offences, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 486, Punishment not to be imposed in certain cases, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 487, Offences by companies, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 488, Offences by Hindu undivided family, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 489, Presumption as to assets, books of account, etc., in certain cases, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 490, Presumption as to culpable mental state, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 491, Prosecution to be at instance of specified senior income-tax authority, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 492, Certain offences to be non-cognizable, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 493, Proof of entries in records or documents, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 494, Disclosure of particulars by public servants, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 495, Designation of Special Courts, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 496, Offences triable by Special Court, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 497, Trial of offences as summons case, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Section 498, Application of Bharatiya Nagarik Suraksha Sanhita, 2023 to proceedings before Special Court, should be applied through a condition-by-condition matrix covering person, trigger, time, amount, authority, evidence, form, consequence and remedy.
Use a source-dated conclusion, reviewer sign-off, unresolved-issue log and post-filing monitoring step.
Use a source-dated conclusion, reviewer sign-off, unresolved-issue log and post-filing monitoring step.
Use a source-dated conclusion, reviewer sign-off, unresolved-issue log and post-filing monitoring step.
Use a source-dated conclusion, reviewer sign-off, unresolved-issue log and post-filing monitoring step.
Source discipline
https://www.incometaxindia.gov.in/documents/d/guest/income_tax_act_2025_as_amended_by_fa_act_2026-pdf
https://www.incometaxindia.gov.in/documents/d/guest/en-notified-it-rules-2026-20-03-2026-pdf
https://www.incometaxindia.gov.in/income-tax-act