Section 480
Section 480: failure to furnish return of income setting forth undisclosed income
Section 480 is a search-case provision: it punishes the wilful failure to file, in due time, a return of undisclosed income for the block period when required by a notice under section 294(1)(a). Like several other offence sections in this Chapter, the punishment is graded by the amount of tax involved.
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 480 says
"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--"
- With simple imprisonment for a term up to two years, or with fine, or with both - where the amount of tax exceeds fifty lakh rupees.
- With simple imprisonment up to six months, or with fine, or with both - where the amount of tax exceeds ten lakh rupees but does not exceed fifty lakh rupees.
- With fine, in any other case.
Note on an earlier version of this section
The Act's footnotes record that this section (along with section 481) was substituted by the Finance Act, 2026, with effect from 1 April 2026. Before that substitution, the equivalent provision was titled "Failure to furnish return of income in search cases" and punished a wilful failure to furnish the return of total income (required by notice under section 294(1)(a)) with imprisonment of not less than three months, extendable to three years, and with fine.
Frequently asked questions
What triggers the offence under Section 480?
A wilful failure to furnish, in due time, the return of income setting forth undisclosed income for the block period, where that return was required by a notice under section 294(1)(a).
What is the punishment?
Graded by the amount of tax involved: simple 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; fine only in any other case.
Related sections
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Talk to our tax team about a search-case noticeLast updated 9 September 2026