Sections 484 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 484 to 486 complete the core offences of Chapter XXII. Section 484 punishes a person who abets or induces another to make a false account, statement or declaration, or to commit the offence of wilful evasion. Section 485 raises the punishment for a person convicted again of certain offences. Section 486 says no one is punishable for the failures in sections 476 and 477 if reasonable cause is proved. This article follows the text as per the Income-tax Act, 2025 as amended by the Finance Act, 2026; sections 484 and 485 were amended by sections 118 and 119 of that Act, with effect from 1 April 2026. If you face a notice or complaint, see our legal dispute resolution service.
Section 484: abetting or inducing a false account, statement or declaration, or an offence under section 478(1), is punishable in three tiers by the tax, penalty or interest involved: up to two years above fifty lakh rupees, up to six months from ten to fifty lakh rupees, otherwise fine. Section 485: a second or later conviction under the listed sections carries simple imprisonment of at least six months and up to three years, and fine. Section 486: no punishment for the failures in sections 476 and 477 if reasonable cause is proved.
Section 484: abetment of false return and related offences
The conduct
Section 484 applies to a person who abets or induces in any manner another person:
- (a) to make and deliver an account, statement or declaration relating to any income chargeable to tax which is false and which he either knows to be false or does not believe to be true; or
- (b) to commit an offence under section 478(1).
Two words matter: "abets" and "induces", which together cover encouraging, instructing and persuading. The person abetted need not have succeeded in evading tax; the measure below refers to what "would have been evaded" or "is wilfully attempted to be evaded".
The punishment
As amended by the Finance Act, 2026, he shall be punishable:
| Clause | Where the amount of tax, penalty or interest which would have been evaded, if the declaration, account or statement had been accepted as true, or which is wilfully attempted to be evaded | Punishment |
|---|---|---|
| (i) | Exceeds fifty lakh rupees | Simple imprisonment for a term up to two years, or with fine, or with both |
| (ii) | Exceeds ten lakh rupees but does not exceed fifty lakh rupees | Simple imprisonment for a term up to six months, or with fine, or with both |
| (iii) | Any other case | Fine |
The tiers use "tax, penalty or interest", wider than the "tax" used in some other sections of this Chapter. Section 478(1), referred to in clause (b), is the offence of wilfully attempting to evade tax, penalty or interest or under-reporting income; see our post on section 478.
Example (facts and amounts assumed). Mr. Chawla, an adviser, induces a client, Seema Furnishings, to file a declaration he knows to be false, claiming expenses that never existed. Had the declaration been accepted as true, tax of Rs. 65,00,000 would have been evaded. Clause (i) applies to Mr. Chawla: simple imprisonment up to two years, or fine, or both. If the figure were Rs. 22,00,000, clause (ii) applies, and if it were Rs. 4,00,000, clause (iii) gives fine only.
Section 485: second and subsequent offences
If any person convicted of an offence under section 476, 477, 478(1), 479, 480, 482 or 484 is again convicted of an offence under any of those sections, he shall be punishable for the second and for every subsequent offence with simple imprisonment for a term which shall not be less than six months but which may extend to three years, and with fine.
Points to note:
- The list of sections is closed. It names 476, 477, 478(1), 479, 480, 482 and 484. Sections 473, 474, 475, 481 and 483 are not on the list, nor is section 478(2).
- The second conviction may be under any section on the list, not necessarily the same one as the first.
- The punishment has a floor and a ceiling: not less than six months and up to three years, and the sentence is both imprisonment and fine ("and").
- The punishment applies to "the second and every subsequent offence".
Example (facts assumed). Mr. Tandon is convicted under section 479 for not filing a return. Later he is convicted under section 482 for a false verification. Both are on the list, so for the second offence he is punishable with simple imprisonment of not less than six months and up to three years, and with fine. A prior conviction under section 481 (not on the list) would not trigger section 485.
Our posts on section 476 and section 479 cover two of the listed offences; each was amended by the Finance Act, 2026, so read the current text of the sections. Sections 480 and 482 are in our article on sections 480 to 483.
Section 486: reasonable cause for failures in sections 476 and 477
No person shall be punishable for any failure referred to in section 476 or 477, irrespective of anything contained in that section, if he proves that there was reasonable cause for such failure.
| Feature | Position |
|---|---|
| Which offences | Failure to pay tax deducted at source (section 476) and failure to pay tax collected at source (section 477) |
| Who must prove | The person: "if he proves" |
| Standard | "Reasonable cause" |
| Which other offences | Section 486 names only sections 476 and 477 |
The section does not define reasonable cause. For the penalty-side analogue see our post on section 470; that section concerns penalties and is separate from section 486, which concerns punishment under Chapter XXII.
Example (facts assumed). A company's bank blocks its account for three days because of a technical failure and the TDS payment is delayed. In a complaint under section 476 the person responsible proves that the failure to pay was for reasonable cause. Under section 486 he is not punishable. If the failure were an attempt to evade tax under section 478, section 486 would not apply.
Putting the three sections together
| Section | Subject | Key feature |
|---|---|---|
| 484 | Abetting or inducing a false account, statement or declaration, or an offence under section 478(1) | Tiers by tax, penalty or interest: two years / six months / fine |
| 485 | Second and later convictions under listed sections | Minimum six months, maximum three years, and fine |
| 486 | Failures in sections 476 and 477 | No punishment if reasonable cause is proved |
Several things come out of the three sections. A professional can be exposed under section 484 on the client's facts, even if the client is the main actor. A repeat conviction changes the nature of the sentence: from a graded range with a fine option to a mandatory floor of six months and a fine. And the reasonable cause defence is narrow, available to payment defaults under sections 476 and 477 only. The next sections of the Chapter deal with offences by companies and Hindu undivided families; see the Chapter XXII guide.
Need help with a prosecution notice?
Whether conduct amounts to abetment, whether an earlier conviction is on the section 485 list and whether reasonable cause can be shown are matters that depend on the facts and the record. Our legal dispute resolution team reviews the complaint, the documents and the defences before you respond.
Key takeaways
- Section 484 punishes abetting or inducing a false account, statement or declaration, or an offence under section 478(1).
- Punishment under section 484 is in three tiers by the tax, penalty or interest involved: up to two years, up to six months, or fine.
- Section 485 sets simple imprisonment of not less than six months and up to three years, and fine, for second and later convictions under sections 476, 477, 478(1), 479, 480, 482 or 484.
- Section 486 provides that no person is punishable for failures in sections 476 and 477 if reasonable cause is proved.
- Sections 484 and 485 were amended by sections 118 and 119 of the Finance Act, 2026.
Read next
- Sections 480 to 483: offences of not furnishing a search return, special audit default, false statement and falsified books
- Section 478: wilful attempt to evade tax
- Section 476: prosecution for not depositing TDS
- Section 470: the reasonable cause defence
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.