Section 484 — Abetment of False Return - Statement | ITA 2025

Section 484 of the Income-tax Act, 2025 corresponds to s. 278 of the Income-tax Act, 1961. STATUTORY ARCHITECTURE Imprisonment 6 months to 7 years (above INR 25L) or 3 months to 2 years (below). Punishes person who abets / induces another…

Section 484 — - ABETMENT OF FALSE RETURN / STATEMENT

Section 484 of the Income-tax Act, 2025 corresponds to s. 278 of the Income-tax Act, 1961.

Statutory text — Income-tax Act, 2025

If a person abets or induces in any manner another person––

(a) to make and deliver an account or a statement or declaration relating to any income chargeable to tax which is false and which he either knows to be false or does not believe to be true; or

(b) to commit an offence under section 478(1), 29[he shall be punishable—

(i) with simple imprisonment for a term up to two years, or with fine, or with both, where the amount of tax, penalty or interest which would have been evaded, if the declaration, account or statement had been accepted as true, or which is wilfully attempted to be evaded, exceeds fifty lakh rupees; or

(ii) with simple imprisonment for a term up to six months, or with fine, or with both, where the amount of tax, penalty or interest which would have been evaded, if the declaration, account or statement had been accepted as true, or which is wilfully attempted to be evaded, exceeds ten lakh rupees but does not exceed fifty lakh rupees; or

(iii) with fine, in any other case.]

28. Substituted for “rigorous imprisonment for a term which shall not be less than three months but which may extend to two years and with fine” by the Finance Act, 2026, w.e.f. 1-4-2026.

29. Substituted for the following by the Finance Act, 2026, w.e.f. 1-4-2026: “he shall be punishable,—

(i) in a case, where the amount of tax, penalty or interest which would have been evad- ed, if the declaration, account or statement had been accepted as true, or which is wilfully attempted to be evaded, exceeds twenty-five lakh rupees, with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years, and with fine;

(ii) in any other case, with rigorous imprisonment for a term which shall not be less than three months but which may extend to two years, and with fine.” Punishment for second and subsequent offences.

STATUTORY ARCHITECTURE

Imprisonment 6 months to 7 years (above INR 25L) or 3 months to 2 years (below). Punishes person who abets / induces another to make false return, account, statement, declaration.

PRACTITIONER PLANNING NOTES

Tax practitioner risk: ensure due diligence, do not knowingly abet false claim; keep advisory communications documented.

CROSS-REFERENCES

s. 491 [279] -- sanction and compounding.
s. 486 [278AA] -- reasonable cause.
s. 487 [278B] -- offences by companies.
s. 490 [278E] -- presumption of culpable mental state.

← All sections (537)Act 2025 hub

INCOME-TAX ACT, 2025	INCOME-TAX ACT, 1961
2025 provision	1961 counterpart
s. 484 -- Abetment of False Return / Statement	s. 278