Removal, concealment, transfer or delivery of property to prevent tax recovery
[Section-475 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Whoever, fraudulently removes, conceals, transfers or delivers to any person, any property or any interest therein, with the intent to prevent such property or interest from being taken in execution of a certificate as prescribed, shall be punishable with rigorous imprisonment for a term which may extend to two years and shall also be liable to fine.
FAQs on Section 475 of Income Tax Act 2025
What does Section 475 of the Income Tax Act, 2025 deal with?
Section 475 deals with fraudulent actions involving the removal, concealment, transfer, or delivery of property to prevent tax recovery.
What kind of actions are punishable under Section 475?
Any fraudulent removal, concealment, transfer, or delivery of property or any interest in it, with the intent to prevent its seizure in tax recovery proceedings, is punishable.
What is the intention that makes the act punishable under Section 475?
The punishable intent is to prevent the property or interest from being taken in execution of a recovery certificate under the Act.
What is the punishment prescribed under Section 475?
The punishment includes rigorous imprisonment for up to two years and also a fine.
Does the section require the act to be done fraudulently?
Yes, only fraudulent acts with the specified intent are covered under this section.
Can someone be punished under this section even if the recovery certificate has not yet been executed?
Yes, if the act is done with the intent to prevent future execution of such a certificate, punishment under this section can apply.
What types of property are covered under Section 475?
All types of property or any interest therein are covered, whether movable or immovable.
Is actual prevention of tax recovery required for punishment under Section 475?
No, the attempt or intent to prevent recovery is sufficient for prosecution.
Does this section apply to delivery of property to another person as well?
Yes, fraudulent delivery to any person to evade tax recovery is covered.
Is a fine mandatory under Section 475?
Yes, in addition to rigorous imprisonment, the offender shall also be liable to fine.
What is meant by ‘execution of a certificate’ in Section 475?
It refers to the enforcement of a tax recovery certificate issued under the Income Tax Act, 2025.
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