Amendment of section 277A.
104. In section 277A of the Income-tax Act, for the words “three years”, the words “two years” shall be substituted with effect from the 1st day of July, 2012.
Notes on Clauses:
Clause 104 of the Bill seeks to amend section 277A of the Income-tax Act relating to falsification of books of account or document, etc.
The existing provisions of the aforesaid section 277A provide that if any person (the first person) wilfully and with intent to enable any other person (the second person) to evade any tax or interest or penalty chargeable and imposable under this Act, makes or causes to be made any entry or statement which is false, and which the first person either knows to be false or does not believe to be true, in any books of account or other document relevant to or useful in any proceeding against the first person or the second person, under the Act, the first person shall be punishable 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 section so as to reduce the maximum imprisonment from three years to two years.
This amendment will take effect from 1st July, 2012.
