Section 475

Section 475: removal, concealment, transfer or delivery of property to prevent tax recovery

Section 475 opens Chapter XXII (Offences and Prosecution) of the Income-tax Act, 2025. It criminalises fraudulently hiding, moving or handing over property specifically to stop it being seized under a tax recovery certificate drawn under section 413. This is a criminal provision - the exact wording of the offence and punishment is quoted below without paraphrase.

This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.

What Section 475 says

"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 therein from being taken in execution of a certificate drawn under section 413, shall be punishable with simple imprisonment for a term up to two years and with fine."

The Act's footnotes record that this punishment - "simple imprisonment for a term up to two years and with fine" - was substituted by the Finance Act, 2026 (with effect from 1 April 2026) for the earlier wording, "rigorous imprisonment for a term which may extend to two years and shall also be liable to fine". The section heading itself was also updated at the same time, from "Contravention of order made under section 247" to its current title.

What the offence requires

The offence requires a fraudulent act - removing, concealing, transferring or delivering property or an interest in property - done with the specific intent of preventing that property from being taken in execution of a certificate drawn under section 413 (the tax recovery certificate provision).

Frequently asked questions

What is the punishment under Section 475?

Simple imprisonment for a term up to two years, and with fine, as currently worded following the Finance Act, 2026 amendment effective 1 April 2026.

What conduct does Section 475 punish?

Fraudulently removing, concealing, transferring or delivering property (or an interest in it) to any person, with the intent to prevent that property from being taken in execution of a tax recovery certificate drawn under section 413.