Amendment of section 276CC.
102. In section 276CC of the Income-tax Act, with effect from the 1st day of July, 2012,––
(a) in clause (i), for the words “one hundred thousand rupees”, the words “twenty-five hundred thousand rupees” shall be substituted;
(b) in clause (ii), for the words “three years”, the words “two years” shall be substituted.
Notes on Clauses:
Clause 102 of the Bill seeks to amend section 276CC of the Income-tax Act relating to failure to furnish return of income.
The existing provisions of the aforesaid section 276CC provide that if a person wilfully fails to furnish in due time the return of fringe benefits which he is required to furnish under sub-section (1) of section 115WD or by notice given under sub-section (2) of the said section or section 115WH or the return of income which he is required to furnish under sub-section (1) of section 139 or by notice given under clause (i) of sub-section (1) of section 142 or section 148 or section 153A, he shall be punishable in case where the amount of tax which would have been evaded if the failure had not been discovered exceeds one 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; and in any other case, with imprisonment for a term which shall not be less than three months but which may extend to three years and with fine.
It is proposed to amend the aforesaid section so as to increase the limit of amount of tax which would have been evaded if the failure had not been discovered, from one hundred thousand rupees to twenty-five hundred thousand rupees and to reduce the maximum imprisonment from three years to two years.
These amendments will take effect from 1st July, 2012.
