Sections 480 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.
Sections 480 to 483 are four offences in Chapter XXII. Section 480 is wilfully failing to furnish a return of undisclosed income for a block period after a search. Section 481 is wilfully failing to comply with a direction for special audit or valuation. Section 482 is a false statement in a verification, account or statement. Section 483 is falsifying books or documents to help another person evade tax. This article follows the text as per the Income-tax Act, 2025 as amended by the Finance Act, 2026: sections 480 and 481 are as substituted, and sections 482 and 483 were amended, by that Act (sections 115, 116 and 117), with effect from 1 April 2026. If you have received a notice, see our legal dispute resolution service.
Section 480: wilful failure to file the return for the block period: up to two years if the tax exceeds fifty lakh rupees, up to six months if it exceeds ten lakh rupees up to fifty lakh rupees, otherwise fine. Section 481: wilful non-compliance with a direction under section 268(5): simple imprisonment up to six months, or fine, or both. Section 482: a false verification, account or statement: the same three tiers by the tax that would have been evaded. Section 483: wilful false entries to help another evade tax: simple imprisonment up to two years and fine.
Section 480: return of undisclosed income for the block period
If a person wilfully fails to furnish in due time the return of income, setting forth his undisclosed income for the block period, which is required to be furnished by notice given under section 294(1)(a), he shall be punishable:
| Clause | Where the amount of tax | Punishment |
|---|---|---|
| (a) | Exceeds fifty lakh rupees | Simple imprisonment for a term up to two years, or with fine, or with both |
| (b) | Exceeds ten lakh rupees but does not exceed fifty lakh rupees | Simple imprisonment up to six months, or with fine, or with both |
| (c) | Any other case | Fine |
"Wilfully" is the key word: the failure must be deliberate, not merely late. The block period and the notice are in the search provisions (Chapter XVI, Part B), not explained here. The heading of section 480 in the Act is "Failure to furnish return of income setting forth undisclosed income". For the ordinary offence of not filing a return, see our post on section 479, whose current text was also amended by the Finance Act, 2026.
Example (amounts assumed). After a search, Ravi Impex receives a notice under section 294(1)(a) requiring a return of undisclosed income for the block period. It wilfully fails to furnish the return in due time. The tax on that undisclosed income is Rs. 18,00,000. Clause (b) applies: simple imprisonment up to six months, or fine, or both. If the tax had been Rs. 60,00,000, clause (a) would allow up to two years.
Section 481: direction for special audit or valuation
If a person wilfully fails to comply with a direction issued to him under section 268(5), he shall be punishable with simple imprisonment for a term up to six months, or with fine, or with both. The direction itself is in section 268(5) and is not explained here. The section prints no thresholds of tax; one punishment applies to every wilful failure.
Example (facts assumed). An Assessing Officer directs Kalyan Textiles, under section 268(5), to get its accounts specially audited. The proprietor wilfully ignores the direction. Section 481 applies.
Section 482: false statement in verification
If a person makes a statement in any verification under the Act or under any rule made under it, or delivers an account or statement which is false, and which he either knows or believes to be false, or does not believe to be true, he shall be punishable:
| Clause | Where the amount of tax which would have been evaded if the statement or account had been accepted as true | Punishment |
|---|---|---|
| (a) | Exceeds fifty lakh rupees | Simple imprisonment up to two years, or with fine, or with both |
| (b) | Exceeds ten lakh rupees but does not exceed fifty lakh rupees | Simple imprisonment up to six months, or with fine, or with both |
| (c) | Any other case | Fine |
Three observations. First, the mental element has three forms: knows it to be false, believes it to be false, or does not believe it to be true. An honest mistake is outside the section. Second, the measure is the tax that would have been evaded if the statement had been accepted as true, not the tax actually lost. Third, the section covers "any verification under this Act", so it can attach to a return, a statement, or other verified documents.
Example (amounts assumed). Meghna Associates knowingly verifies a return that shows expenses it never incurred; had it been accepted, tax of Rs. 14,00,000 would have been evaded. Clause (b) applies. If the tax that would have been evaded were Rs. 8,00,000, clause (c) gives fine only.
Section 483: falsification of books of account or documents
Sub-section (1)
If any person (the first person) wilfully and with intent to enable any other person (the second person) to evade any tax, interest or penalty chargeable and imposable under the Act, 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 the Act, the first person shall be punishable with simple imprisonment for a term up to two years and with fine.
Sub-section (2)
For establishing the charge it shall not be necessary to prove that the second person has actually evaded any tax, penalty or interest.
The offence therefore turns on the first person's wilful act and intent. The punishment is both imprisonment and fine. Compare section 444, which provides a penalty for a false entry, in our article on sections 441, 442, 444 and 445.
Example (facts assumed). An accountant, Mr. Pillai, wilfully inserts a false purchase entry into a client's books, intending to help the client reduce tax. Sub-section (2) says the prosecution need not prove that the client actually evaded any tax. Mr. Pillai, as the first person, is punishable under sub-section (1).
Comparison
| Section | Offence | Mental element | Punishment |
|---|---|---|---|
| 480 | Failing to furnish block-period return | Wilfully | Tiered by tax: up to two years / up to six months / fine |
| 481 | Failing to comply with a direction under section 268(5) | Wilfully | Simple imprisonment up to six months, or fine, or both |
| 482 | False verification, account or statement | Knows, believes or does not believe it true | Tiered by tax that would have been evaded |
| 483 | False entry in books to enable another to evade | Wilfully, with intent | Simple imprisonment up to two years and fine |
For the other offences in this Chapter, see our posts on section 478 and section 479, and our articles on sections 473, 474, 475 and 477 and sections 484 to 486. The Chapter overview is in the Chapter XXII guide.
Need help with a notice on one of these offences?
Whether a failure was wilful, whether a statement was knowingly false and what tax would have been evaded are factual questions. Our legal dispute resolution team reviews the notice, the documents and the thresholds before you respond.
Key takeaways
- Section 480: wilful failure to furnish the block-period return required by a notice under section 294(1)(a), punished in three tiers by the amount of tax.
- Section 481: wilful failure to comply with a direction under section 268(5), up to six months, fine or both.
- Section 482: a statement the person knows or believes to be false, or does not believe to be true; three tiers by the tax that would have been evaded.
- Section 483: wilful false entries with intent to help another evade tax; simple imprisonment up to two years and fine; actual evasion need not be proved.
- Sections 480 and 481 are as substituted, and sections 482 and 483 were amended, by the Finance Act, 2026.
Read next
- Sections 484 to 486: abetment, second offences and punishment not to be imposed in certain cases
- Sections 473, 474, 475 and 477: offences in search cases, obstructing recovery and failure to pay TCS
- Section 479: prosecution for not filing a return
- Section 478: wilful attempt to evade tax
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.