The Statutory Brief

IT Act 1961 → 2025 / Sections 276–280D

Penalties

Sections 276–280D → Sections 475–498

Prosecution: false statements, TCS default, abetment, company offences, Special Courts

Sections 276–280D of the old Income-tax Act, 1961 · new sections 475–498 under the Income-tax Act, 2025

New reference Sections 475 to 498 (offences and prosecution)

Income-tax Act, 1961Sections 276–280D

  • 276–277A: concealment of property, TCS not paid, false verification, falsified books
  • 278: abetment; 278A: second offence — rigorous imprisonment 6 months to 7 years (simple, up to 3 years, from 1 March 2026)
  • 278B, 278C: offences by companies and HUFs; 278D, 278E: presumptions
  • 279: sanction for prosecution and compounding; 280A–280D: Special Courts

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

Income-tax Act, 2025Sections 475 to 498 (offences and prosecution)

  • Simple imprisonment replaces rigorous imprisonment (FA 2026)
  • Tiered terms: up to 2 years if tax exceeds ₹50 lakh; up to 6 months for ₹10–50 lakh; fine only below ₹10 lakh
  • Second offence (485): simple imprisonment 6 months to 3 years and fine
  • Failure to produce accounts (old 276D) dropped; 481 now covers only non-compliance with a 268(5) direction

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

Section-by-section mapping (21 sections)

1961 ActSubject2025 Act
276Removal, concealment, transfer or delivery of property to prevent tax recovery475
276BBFailure to pay tax collected at source477
276CCCFailure to furnish return of income in search cases480
276DFailure to produce accounts and documents481 (narrowed by FA 2026)
277False statement in verification, etc.482
277AFalsification of books of account or document, etc483
278Abetment of false return, etc484
278APunishment for second and subsequent offences485
278AAPunishment not to be imposed in certain cases486
278BOffences by companies487
278COffences by Hindu undivided family488
278DPresumption as to assets, books of account, etc., in certain cases489
278EPresumption as to culpable mental state490
279Prosecution at the instance of PCCIT/CCIT/PCIT/CIT491
279ACertain offences to be non-cognizable492
279BProof of entries in records or documents493
280Disclosure of particulars by public servants494
280ASpecial Courts495
280BOffences triable by Special Court496
280CTrial of offences as summons case497
280DApplication of Code of Criminal Procedure, 1973 to proceedings before Special Court498

Source: CBDT mapping of sections, Income-tax Act 1961 to Income-tax Act 2025.

What changed

Finance Act 2026, w.e.f. 1 April 2026, softened the prosecution chapter: 'rigorous imprisonment' became 'simple imprisonment', minimum terms were removed for most offences, and punishment is tiered by the tax involved (₹50 lakh / ₹10 lakh thresholds). The same softening was made to the 1961 Act's offences from 1 March 2026.

Practice notes

  • Wilful failure to file return (old 276CC) and TDS default (old 276B) have their own pages.
  • Section 486 (old 278AA) — no punishment if reasonable cause is proved — continues.
  • Offences committed before 1 April 2026 remain governed by the 1961 Act provisions.

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 income tax prosecution still rigorous imprisonment under the new Act?

No. Finance Act 2026 replaced rigorous imprisonment with simple imprisonment across the offences chapter of the Income-tax Act, 2025.

What is section 277 in the new Income Tax Act?

False statement in verification (old 277) is section 482: up to 2 years if tax evaded exceeds ₹50 lakh, up to 6 months for ₹10–50 lakh, otherwise fine.

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

Section 276 of the Income-tax Act, 1961 (Removal, concealment, transfer or delivery of property to prevent tax recovery) corresponds to section 475 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

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

Section 276BB of the Income-tax Act, 1961 (Failure to pay tax collected at source) corresponds to section 477 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

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

Section 276CCC of the Income-tax Act, 1961 (Failure to furnish return of income in search cases) corresponds to section 480 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

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

Section 276D of the Income-tax Act, 1961 (Failure to produce accounts and documents) corresponds to section 481 (narrowed by FA 2026) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What is section 277 called in the new Income-tax Act, 2025?

Section 277 of the Income-tax Act, 1961 (False statement in verification, etc) corresponds to section 482 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What is section 277A called in the new Income-tax Act, 2025?

Section 277A of the Income-tax Act, 1961 (Falsification of books of account or document, etc) corresponds to section 483 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in sections 276–280D under the new Income Tax Act?

Finance Act 2026, w.e.f. 1 April 2026, softened the prosecution chapter: 'rigorous imprisonment' became 'simple imprisonment', minimum terms were removed for most offences, and punishment is tiered by the tax involved (₹50 lakh / ₹10 lakh thresholds). The same softening was made to the 1961 Act's offences from 1 March 2026.

Related sections

276CC→479Prosecution for wilful failure to file the income tax return276B→476Prosecution for failure to deposit TDS270A→439Penalty for under-reporting and misreporting of income271C→448Penalty for failure to deduct TDS