Wilful attempt to evade tax, etc.

1. (1) If a person wilfully attempts in any manner whatsoever to evade any tax, penalty or interest chargeable 4[or imposable, or under reports his income,] under this Act, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this Act, be punishable,—
   • (i) in a case where the amount sought to be evaded 5[or tax on under-reported income] exceeds 6[twenty-five hundred thousand rupees], with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and with fine;
   • (ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to 7[two years] and with fine.
2. (2) If a person wilfully attempts in any manner whatsoever to evade the payment of any tax, penalty or interest under this Act, he shall, without prejudice to any penalty that may be imposable on him under any other provision of this Act, be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to 8[two years] and shall, in the discretion of the court, also be liable to fine. Explanation.—For the purposes of this section, a wilful attempt to evade any tax, penalty or interest chargeable or imposable under this Act or the payment thereof shall include a case where any person—
   • (i) has in his possession or control any books of account or other documents (being books of account or other documents relevant to any proceeding under this Act) containing a false entry or statement; or
   • (ii) makes or causes to be made any false entry or statement in such books of account or other documents; or
   • (iii) wilfully omits or causes to be omitted any relevant entry or statement in such books of account or other documents; or
   • (iv) causes any other circumstance to exist which will have the effect of enabling such person to evade any tax, penalty or interest chargeable or imposable under this Act or the payment thereof.

¹ Subs. by Act 26 of 1997, s. 56, for section 276B (w.e.f. 1-6-1997).

² Subs. by Act 41 of 1975, s. 68, for section 276B and 276C (w.e.f. 1-10-1975). Earlier section 276C was inserted by Act 42 of 1970, s. 52 (w.e.f. 1-4-1971) and section 276B was inserted by Act 19 of 1968, s. 21 (w.e.f. 1-4-1968) and later on section 276B amended by Act 46 of 1986, s. 27 (w.e.f. 10-9-1986).

³ Ins. by Act 26 of 1988, s. 46 (w.e.f. 1-6-1988).

⁴ Subs. by Act 28 of 2016, s. 109, for “or imposable” (w.e.f. 1-4-2017).

⁵ Ins. by s. 109, ibid. (w.e.f. 1-4-2017).

⁶ Subs. by Act 23 of 2012, s. 106, for “one hundred thousand rupees” (w.e.f.1-7-2012).

⁷ Subs. by s. 106, ibid., for “three years” (w.e.f. 1-7-2012).