Section 479
Section 479: failure to furnish returns of income
Section 479 makes it a criminal offence to wilfully fail to furnish a return of income in due time, where that return is required under section 263(1) or by a notice given under section 268(1) or 280. The punishment depends on the amount of tax that would have been evaded had the failure not been discovered, and the section also sets out situations where a person cannot be prosecuted for the failure at all.
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.
The offence and punishment
"If a person 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 280, he shall be punishable,--"
- With simple imprisonment for a term up to two years, or with fine, or with both - where the amount of tax which would have been evaded (if the failure had not been discovered) exceeds fifty lakh rupees.
- With simple imprisonment for a term up to six months, or with fine, or with both - where that amount of tax exceeds ten lakh rupees but does not exceed fifty lakh rupees.
- With fine, in any other case.
When a person cannot be prosecuted under this section
A person shall not be proceeded against under sub-section (1) for failing to furnish in due time the return of income under section 263(1) for any tax year, if:
- A return is furnished by him under section 263(4) or 263(6); or
- The tax payable by such person, not being a company, on the total income determined on regular assessment - reduced by advance tax or self-assessment tax already paid before the expiry of the period specified under section 263(4), and any tax deducted or collected at source - does not exceed ₹10,000.
Recent change to the punishment structure
The Act's footnotes record that clauses (a), (b) and (c) above were substituted for an earlier two-clause structure by the Finance Act, 2026, with effect from 1 April 2026. The earlier wording provided rigorous imprisonment of not less than six months (extendable to seven years) with fine where the evaded tax exceeded twenty-five lakh rupees, and imprisonment of not less than three months (extendable to two years) with fine in any other case.
Frequently asked questions
Is every late return of income a criminal offence under Section 479?
No - the section requires a wilful failure to furnish the return in due time. It does not apply where a return is furnished under section 263(4) or (6), or where the tax payable (for a non-company person) after adjusting advance tax, self-assessment tax and TDS/TCS does not exceed ₹10,000.
What determines the severity of punishment under Section 479?
The amount of tax that would have been evaded if the failure had not been discovered - imprisonment up to two years (or fine, or both) above ₹50 lakh, up to six months (or fine, or both) between ₹10 lakh and ₹50 lakh, and fine only below ₹10 lakh.
Related sections
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Talk to our tax team about a return-filing noticeLast updated 9 September 2026