Offences by Hindu undivided family
[Section-488 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 488(1) of Income Tax Act 2025
488(1) Where an offence under this Act has been committed by a Hindu undivided family, the karta thereof shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.
Section 488(2) of Income Tax Act 2025
488(2) Nothing contained in sub-section (1) shall render the karta liable to any punishment, if he proves that the offence was committed without his knowledge or that he had exercised all due diligence to prevent the commission of such offence.
Section 488(3) of Income Tax Act 2025
488(3) Irrespective of anything contained in sub-section (1), where an offence under this Act has been committed by a Hindu undivided family, a member of such Hindu undivided family shall also be deemed to be guilty of that offence and shall be liable to be proceeded against and punished accordingly, if it is proved that—
- 488(3)(a) the offence has been committed with the consent or connivance of such member; or
- 488(3)(b) the offence is attributable to any neglect on the part of such member
FAQs on Section 488 of Income Tax Act 2025
Who is held responsible if a Hindu Undivided Family commits an offence under the Income Tax Act, 2025?
The karta of the Hindu Undivided Family is deemed to be guilty of the offence and can be proceeded against and punished accordingly.
Can the karta avoid punishment for an offence committed by the HUF?
Yes, the karta can avoid punishment if he proves that the offence was committed without his knowledge or that he exercised all due diligence to prevent its commission.
Is only the karta liable for an offence by the HUF?
No, other members of the HUF can also be held liable if the offence was committed with their consent or connivance, or is attributable to their neglect.
What conditions must be proven to hold a member (other than the karta) guilty?
A member can be held guilty if it is proved that the offence was committed with their consent or connivance, or due to their neglect.
Does Section 488(3) override Section 488(1) regarding member liability?
Yes, Section 488(3) applies irrespective of Section 488(1), allowing members of the HUF to be punished if their involvement meets the specified criteria.
What does “connivance” mean in the context of Section 488(3)?
Connivance refers to knowingly allowing or cooperating in the commission of the offence by the HUF.
What is considered “neglect” under Section 488(3)(b)?
Neglect implies failure to take reasonable care or act responsibly, which leads to or contributes to the offence committed by the HUF.
If both the karta and a member are guilty, can both be prosecuted?
Yes, both the karta and the involved member can be proceeded against and punished if found guilty under their respective clauses.
Does the Act specify any relief for innocent members of the HUF?
Yes, only those members who are proven to have consented, connived, or neglected duties can be held liable; others are not deemed guilty merely by association.
Is knowledge of the offence enough to punish the karta?
Yes, if the karta knew about the offence and did not take action, he is liable. However, lack of knowledge and proof of due diligence can exempt him from punishment.
