Falsification of books of account or document, etc.
[Section-483 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 483(1) of Income Tax Act 2025
483(1) If any person (herein referred to as the first person) wilfully and with intent to enable any other person (herein referred to as the second person) to evade any tax or interest or penalty chargeable and imposable under this Act in the circumstances referred to in sub-section (2), the first person shall be punishable with rigorous imprisonment for a term which shall not be less than three months but which may extend to two years and with fine.
Section 483(2) of Income Tax Act 2025
483(2) The circumstances referred to in sub-section (1) shall be, where the first person makes or causes to be made any entry or statement which is false and which the first person either knows to be false or does not believe to be true, in any books of account or other document relevant to or useful in any proceedings against the first person or the second person, under this Act.
Section 483(3) of Income Tax Act 2025
483(3) For the purposes of establishing the charge under this section, it shall not be necessary to prove that the second person has actually evaded any tax, penalty or interest chargeable or imposable under this Act.
FAQs on Section 483 of Income Tax Act 2025
What is the main offence described under Section 483(1) of the Income Tax Act, 2025?
Section 483(1) punishes any person who wilfully and with the intent to help another person evade tax, interest, or penalty by making false entries or statements in relevant documents.
What is the punishment prescribed under Section 483(1)?
The punishment is rigorous imprisonment for a minimum of three months which may extend to two years, along with a fine.
Who are the ‘first person’ and ‘second person’ referred to in Section 483?
The ‘first person’ is the individual committing the falsification, and the ‘second person’ is the individual intended to benefit from the evasion of tax, interest, or penalty.
What type of false entries or statements are covered under Section 483(2)?
False entries or statements made knowingly or without belief in their truth in books of account or documents relevant to proceedings under the Act are covered.
Does the false document have to relate to the second person only?
No, the document can be relevant to proceedings against either the first person or the second person.
Is it necessary to prove that the second person actually evaded tax, interest, or penalty?
No, under Section 483(3), it is not necessary to prove that any tax, interest, or penalty was actually evaded.
What is the intention requirement for prosecution under Section 483?
The person must act wilfully and with the intent to enable another person to evade any tax, interest, or penalty.
Can a person be punished under this section even if the evasion attempt fails?
Yes, punishment can be imposed even if the second person does not actually succeed in evading tax, interest, or penalty.
What kinds of documents are considered relevant under this section?
Any books of account or documents relevant to or useful in proceedings under the Act are considered.
Does the Act require the falsification to be in writing only?
Yes, the section specifically refers to entries or statements in books of account or other documents.
Is ignorance of the truth a defence under this section?
No, making a statement one does not believe to be true is treated the same as knowingly making a false statement.
Does this section apply to digital records and electronic documents?
Yes, as electronic records qualify as “documents” under the general interpretation of tax statutes unless explicitly excluded.
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