The Statutory Brief

IT Act 1961 → 2025 / Section 276CC

Penalties

Section 276CC → Section 479

Prosecution for wilful failure to file the income tax return

Section 276CC of the old Income-tax Act, 1961 · new section 479 under the Income-tax Act, 2025

New reference Section 479 (276C → 478)

Income-tax Act, 1961Section 276CC

  • Up to 28 Feb 2026: rigorous imprisonment 6 months–7 years (tax above ₹25 lakh), 3 months–2 years otherwise; amended to the graded scheme from 1 March 2026
  • No prosecution if tax payable is ₹10,000 or less

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 479 (276C → 478)

  • From 1 April 2026 (Finance Act 2026): graded punishment
  • Tax above ₹50 lakh: simple imprisonment up to 2 years, or fine, or both
  • ₹10–50 lakh: up to 6 months, or fine, or both; otherwise fine only
  • No prosecution if a belated or updated return is filed, or tax payable is ₹10,000 or less

Applies from tax year 2026-27 (from 1 April 2026).

What changed

A real change: rigorous imprisonment replaced by graded simple imprisonment or fine — in section 479 of the 2025 Act and, from 1 March 2026, in sections 276C and 276CC of the 1961 Act.

Practice notes

  • Wilful evasion (old 276C) is section 478.

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

Is there prosecution for not filing ITR under the new Income Tax Act 2025?

Section 479: fine only where tax is up to ₹10 lakh; up to 6 months' simple imprisonment for ₹10–50 lakh; up to 2 years above ₹50 lakh. Filing a belated or updated return avoids prosecution.

What is section 276CC called in the new Income-tax Act, 2025?

Section 276CC of the Income-tax Act, 1961 corresponds to Section 479 (276C → 478) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 276CC under the new Income Tax Act?

A real change: rigorous imprisonment replaced by graded simple imprisonment or fine — in section 479 of the 2025 Act and, from 1 March 2026, in sections 276C and 276CC of the 1961 Act.

Is section 276CC still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 276CC of the 1961 Act. Section 479 (276C → 478) of the 2025 Act applies from tax year 2026-27.

Related sections

276B→476Prosecution for failure to deposit TDS139→263Return of income: original, belated, revised, updated and defective returns140B→267Tax and additional tax on updated returns (ITR-U)