Amendment of section 276C.
101. In section 276C of the Income-tax Act, with effect from the 1st day of July, 2012,––
(i) in sub-section (1),––
(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;
(ii) in sub-section (2), for the words “three years”, the words “two years” shall be substituted.
Notes on Clauses:
Clause 101 of the Bill seeks to amend section 276C of the Income-tax Act relating to wilful attempt to evade tax, etc.
The existing provisions of sub-section (1) of the aforesaid section 276C provide that if a person wilfully attempts in any manner whatsoever to evade any tax, penalty or interest chargeable or imposable under the Act, he shall, without prejudice to any penalty that may be imposable on him under any other provision of the Act, be punishable in case where the amount sought to be evaded 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 rigorous 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 sub-section so as to increase the limit of amount sought to be evaded from one hundred thousand rupees to twenty-five hundred thousand rupees and to reduce the maximum imprisonment from three years to two years.
The existing provisions of sub-section (2) of the aforesaid section provides that if a person wilfully attempts in any manner whatsoever to evade the payment of any tax, penalty or interest under the Act, he shall, without prejudice to any penalty that may be imposable on him under any other provision of the Act, be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to three years and shall, in discretion of the court, also with fine.
It is proposed to amend the aforesaid sub-section so as to reduce the maximum imprisonment from three years to two years.
These amendments will take effect from 1st July, 2012.
