Offences and Prosecution

Offences

1. Failure to pay tax deducted at source (TDS): Section 276B of the Income Tax Act deals with the offence of failure to pay tax deducted at source. It stipulates that failure to remit the deducted tax to the government can result in imprisonment for a term ranging from three months to seven years, along with a fine.
2. Failure to pay tax collected at source (TCS): Section 276BB addresses the offence of failure to pay tax collected at source. It states that failure to remit the collected tax to the government can lead to imprisonment for a term ranging from three months to seven years, along with a fine.
3. False statement, verification, or certification: Section 277 covers the offence of providing false statements, false verification, or false certification in documents submitted under the Income Tax Act. It carries a punishment of imprisonment for a term ranging from three months to two years, along with a fine.
4. Abetment of false returns, accounts, statements, or other documents: Section 278 deals with the offence of abetting the filing of false returns, accounts, statements, or other documents. It prescribes imprisonment for a term ranging from six months to seven years, along with a fine.

Prosecution

1. Initiation of prosecution: The decision to initiate prosecution is made by the tax authorities based on the facts and evidence gathered during the assessment or investigation process. It is typically initiated when tax evasion or non-compliance with tax laws is suspected.
2. Legal proceedings: Once prosecution is initiated, criminal proceedings are conducted in a court of law. The accused is given an opportunity to present their case, and the prosecution presents evidence to establish the offence.
3. Penalties and consequences: If found guilty, the accused may face imprisonment, fines, or both, as prescribed by the relevant sections of the Income Tax Act. The severity of the penalty depends on the nature and seriousness of the offence committed.