Chapter XXII - Offences and Prosecution
Section 482
Section 482: false statement in verification, etc.
Section 482 covers false statements made in a verification under the Act or the rules made under it, or a false account or statement delivered under the Act, where the person knows or believes it to be false, or does not believe it to be true. The punishment is graded by the amount of tax that would have been evaded had the false statement or account been accepted as true.
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Need advice on Section 482?
This article is for general information. Refer to the Income-tax Act, 2025 as amended by the Finance Act, 2026 and the Taxation and Other Laws (Amendment) Act, 2026 for the official provisions. If you need professional advice for your situation, contact Bizeneed.
Statutory text
Bare law
If a person makes a statement in any verification under this Act or under any rule made thereunder, 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,—
(a) 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 statement or account had been accepted as true, exceeds fifty lakh rupees; or
(b) with simple imprisonment for a term up to six months, or with fine, or with both, where the amount of tax, which would have been evaded if the statement or account had been accepted as true, exceeds ten lakh rupees but does not exceed fifty lakh rupees; or
(c) with fine, in any other case.
Introduction
Section 482 concerns a knowingly false verification, account or statement under the Act or its rules. The 2026 punishment tiers depend on the tax that would have been evaded had the false matter been accepted as true.
Key takeaways
Knowledge element
The person knows or believes the matter is false, or does not believe it true.
Accepted-as-true test
The amount tier uses tax that would have been evaded if the false matter had been accepted.
Current tiers
The amended provision distinguishes tax above ₹50 lakh, above ₹10 lakh through ₹50 lakh, and other cases.
What Section 482 says
"If a person makes a statement in any verification under this Act or under any rule made thereunder, 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,--"
- 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 statement or account had been accepted as true, 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.
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 rigorous imprisonment of not less than three months (extendable to two years) with fine in any other case.
Applying Section 482 in practice
Knowledge matters. A false verification, account or statement is within this offence only where the maker knows or believes it is false, or does not believe it true. Finance Act 2026 grades punishment by the tax that *would have been evaded if accepted as true*: above ₹50 lakh, above ₹10 lakh through ₹50 lakh, and other cases.
Step-by-step flow for applying Section 482
- 1
Did the person make a statement in a verification under the Act or the rules, or deliver an account or statement?
- No: Section 482 does not apply.
- Yes: Go to the next step.
- 2
Was the statement or account false?
- Not false: No offence under Section 482.
- False: Go to the next step.
- 3
Did the person know or believe it to be false, or not believe it to be true?
Section 490 lets the court presume this mental state; the accused may prove it was absent.
- No such mental state (proved): No offence under Section 482.
- Yes: Go to the next step.
- 4
What tax would have been evaded if the statement or account had been accepted as true?
Above ₹50 lakh: simple imprisonment up to two years, or fine, or both. Above ₹10 lakh but not above ₹50 lakh: simple imprisonment up to six months, or fine, or both. Any other case: fine only. The Act does not state the amount of the fine here.
Practical checklist
Do
- exact signed text, true facts, maker's knowledge, counterfactual tax and amendments or correction.
Illustrative example
Worked example: false claims in a verified return
Hypothetical facts (illustration only, not a real taxpayer): Ms. Kapoor verifies her return claiming deductions supported by documents she knows are fabricated. Had the return been accepted as true, tax of ₹2,40,000 would have been evaded (assumed figure).
Verification
She made a statement in a verification under the Act.
Falsity and knowledge
The claims are false and she knew they were fabricated.
Tier
₹2,40,000 does not exceed ₹10 lakh, so Section 482(c) applies: fine only.
Repeat offence
Section 482 is listed in Section 485, so a later conviction under any listed section would attract the enhanced punishment there.
Outcome
- On these assumed facts she is exposed to a fine under Section 482(c).
- The tier is measured by the tax that would have been evaded, not by the size of the false claim itself.
Frequently asked questions
What does Section 482 punish?
Making a false statement in a verification under the Act or rules made under it, or delivering a false account or statement, where the person knows or believes it to be false, or does not believe it to be true.
How is the punishment determined?
By the amount of tax that would have been evaded if the false statement or account had been accepted as true - imprisonment up to two years (or fine, or both) above ₹50 lakh, up to six months (or fine, or both) where the amount exceeds ₹10 lakh but does not exceed ₹50 lakh, and fine in any other case.
Is every return error criminal?
No; the specified falsehood and mental state must be established.
Need help applying this provision to your situation?
Talk to our tax team about a verification or return noticeLast updated 10 October 2026