Section 291 empowers the Central Government to tender immunity to a person who appears to have been directly or indirectly concerned in, or privy to, the concealment of income or evasion of tax, in order to obtain his evidence. The Government must be of opinion, with reasons recorded in writing, that it is necessary or expedient to do so.
The immunity may cover prosecution for any offence under the Act, the Indian Penal Code (now read as Act No. 45 of 2023 according to the Act's note) or any other Central Act, and also the imposition of any penalty under the Act. It is conditional on the person making a full and true disclosure of the whole circumstances of the concealment or evasion.
Operative consequences
A tender made and accepted makes the person immune, to the extent of the tender, from prosecution for the offence and from penalty under the Act.
If the Central Government finds that the person has not complied with the condition, is wilfully concealing anything or is giving false evidence, it may record a finding, and the immunity is then deemed withdrawn.
After withdrawal, the person may be tried for the original offence or any other offence connected with the same matter, and becomes liable to any penalty to which he would otherwise have been liable.
Status
Section 291 is operative for assessment year 2026-27. It is not time-limited. The Finance Act, 2026 did not amend this section.
The 1961 Act governs assessment year 2026-27 and earlier; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject the 2025 Act provision is s. 519.
Function in the statutory architecture
Section 291 empowers the Central Government to tender immunity to a person who appears to have been directly or indirectly concerned in, or privy to, the concealment of income or evasion of tax, in order to obtain his evidence. The Government must be of opinion, with reasons recorded in writing, that it is necessary or expedient to do so.
The immunity may cover prosecution for any offence under the Act, the Indian Penal Code (now read as Act No. 45 of 2023 according to the Act's note) or any other Central Act, and also the imposition of any penalty under the Act. It is conditional on the person making a full and true disclosure of the whole circumstances of the concealment or evasion.
Operative consequences
Status
Section 291 is operative for assessment year 2026-27. It is not time-limited. The Finance Act, 2026 did not amend this section.
The 1961 Act governs assessment year 2026-27 and earlier; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject the 2025 Act provision is s. 519.