The Income-tax Act, 1961

In one line

What this Act says

The main law on taxing income in India — who pays, on what income, at what rate, and what happens for evasion.

• Wilful attempt to evade tax

  §276C

  Rigorous imprisonment 6 months – 7 years + fine (if tax sought to be evaded exceeds ₹25 lakh, minimum 6 months).

• Failure to file return of income

  §276CC

  Imprisonment 3 months – 2 years + fine; up to 7 years where tax evaded exceeds ₹25 lakh.

• False statement in verification or delivery of accounts

  §277

  Imprisonment 3 months – 7 years + fine.

• Failure to deduct or pay TDS

  §276B

  Imprisonment 3 months – 7 years + fine.

• Penalty for under-reporting of income

  §270A

  50% of tax on under-reported income; 200% if mis-reported.

Headline offences only — not exhaustive. For the full text and every section, open the source PDF or the official link below.

Maximum punishments as prescribed by the Act. Actual sentencing depends on facts, prior convictions and judicial discretion.

Sources

Read the Act yourself

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