Section 479 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 479 makes it an offence to wilfully fail to furnish in due time a return of income that is required to be furnished, and it graduates the punishment by the amount of tax that would have been evaded. This article explains the section as per the Income-tax Act, 2025 as amended by the Finance Act, 2026.
Later amendments, rules and notifications should be checked before you act. If a return is overdue, our income tax return filing service can prepare and file it.
The failure must be wilful. Punishment depends on the tax that would have been evaded if the failure had not been discovered: above fifty lakh rupees, simple imprisonment up to two years, or fine, or both; above ten lakh rupees up to fifty lakh rupees, simple imprisonment up to six months, or fine, or both; any other case, fine. Sub-section (2) keeps a person out of the section if a return is furnished under section 263(4) or 263(6), or if the net tax payable by a person who is not a company does not exceed Rs. 10,000. Clauses (a) to (c) of sub-section (1) were substituted by the Finance Act, 2026, w.e.f. 1-4-2026.
Sub-section (1): which returns
Sub-section (1) applies to a person who wilfully fails to furnish in due time the return of income which is required to be furnished:
- under section 263(1); or
- by notice given under section 268(1); or
- by notice given under section 280.
Section 263 is the general return provision, section 268 is in the assessment chapter, and section 280 is the reassessment notice. See our posts on who must file and the due dates and the reassessment notice.
The punishment bands
| Tax that would have been evaded if the failure had not been discovered | Punishment |
|---|---|
| (a) exceeds fifty lakh rupees | Simple imprisonment for a term up to two years, or fine, or both |
| (b) exceeds ten lakh rupees but does not exceed fifty lakh rupees | Simple imprisonment for a term up to six months, or fine, or both |
| (c) any other case | Fine |
The Finance Act, 2026 substituted clauses (a), (b) and (c) of sub-section (1), with effect from 1-4-2026, as the footnote to sub-section (1) prints. The section does not state the amount of the fine.
Sub-section (2): when a person is not proceeded against
A person shall not be proceeded against under sub-section (1) for failure to furnish in due time the return under section 263(1) for any tax year, if:
- (a) a return is furnished by him under section 263(4) or 263(6); or
- (b) the tax payable by such person, not being a company, on the total income determined on regular assessment, as reduced by the advance tax or self-assessment tax, if any, paid before the expiry of the period specified under section 263(4), and any tax deducted or collected at source, does not exceed Rs. 10,000.
Note the limits of this protection. It is stated for the failure to furnish the return "under section 263(1)"; the words do not extend it to the notice-based returns under sections 268(1) and 280. Clause (b) is for a person "not being a company". The Rs. 10,000 test looks at tax on the income determined on regular assessment, less advance tax, self-assessment tax paid before the expiry of the period specified in section 263(4), and tax deducted or collected at source. For the late-return routes in section 263, see our post on belated, revised, updated and defective returns.
Fee, interest and prosecution are separate
A late return can bring the fee in section 428, interest under section 423 and, only if the failure is wilful and none of the sub-section (2) protections applies, prosecution under section 479. Immunity from prosecution under section 478 or 479 can be sought on conditions in section 440. For a return required in a search case, see sections 480 to 483.
A worked example
All amounts are assumed; names are invented. Imran Sheikh, a resident individual not subject to any exception, wilfully does not furnish his return by the due date in section 263(1), and he does not furnish one later. On regular assessment, the tax that would have been evaded if the failure had not been discovered is Rs. 14,00,000. That exceeds ten lakh rupees but does not exceed fifty lakh rupees, so sub-section (1)(b) applies: simple imprisonment up to six months, or fine, or both.
Compare Meena Pillai, whose total income determined on regular assessment gives tax of Rs. 9,000 after reducing advance tax, self-assessment tax paid in time and tax deducted at source. She is not a company and the tax does not exceed Rs. 10,000, so sub-section (2)(b) keeps her out of the section for failure to furnish the return under section 263(1). If instead she had furnished a return under section 263(4) or 263(6), sub-section (2)(a) would protect her.
Practical points
- The offence needs wilfulness; a return missed through oversight and then corrected is a different case from a deliberate non-filing, but the section itself does not define the word.
- Notice-based returns under sections 268(1) and 280 are covered by sub-section (1) but not by the sub-section (2) protections as printed.
- Companies cannot use the Rs. 10,000 test in sub-section (2)(b).
Need help with an overdue return?
If a return is overdue, filing it quickly under the route the Act allows reduces exposure. Our income tax return filing service can prepare and file it, and our legal consultation service can advise where a notice or prosecution is threatened.
Key takeaways
- The failure must be wilful and in respect of a return required under section 263(1), or by notice under section 268(1) or 280.
- Bands: over Rs. 50 lakh, up to two years; over Rs. 10 lakh to Rs. 50 lakh, up to six months; otherwise fine.
- Sub-section (2): return furnished under section 263(4) or (6), or net tax of a non-company not above Rs. 10,000.
- Substituted w.e.f. 1-4-2026.
Read next
- Section 478: wilful attempt to evade tax
- Section 263: who must file and the due dates
- Section 428: fee for default in furnishing the return
- Section 423: interest for default in furnishing return of income
- Income-tax Act 2025, Chapter XXII: offences and prosecution
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.