Chapter XXII - Offences and Prosecution
Section 483
Section 483: falsification of books of account or document, etc.
Section 483 targets a specific kind of dishonest assistance: a person who wilfully makes, or causes to be made, a false entry or statement in books of account or other documents, intending to help another person evade tax, penalty or interest. Notably, the section states that it is not necessary to prove the other person actually evaded any tax for the charge to be established.
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Need advice on Section 483?
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
(1) If any person (herein referred to as the first person) wilfully and with intent to enable any other person (herein referred to as the second person) to evade any tax or interest or penalty chargeable and imposable under this Act, makes or causes to be made any entry or statement which is false and which the first person either knows to be false or does not believe to be true, in any books of account or other document relevant to or useful in any proceedings against the first person or the second person, under this Act, the first person shall be punishable with simple imprisonment for a term up to two years and with fine.
(2) For the purposes of establishing the charge under this section, it shall not be necessary to prove that the second person has actually evaded any tax, penalty or interest chargeable or imposable under this Act.
Introduction
Section 483 criminalises knowingly false entries or statements made wilfully to enable another person to evade tax, interest or penalty. The prosecution need not prove that the other person actually succeeded in evading the amount.
Key takeaways
Intent and knowledge
The first person must act wilfully with the specified intent and know the entry or statement is false or not believe it true.
Relevant record
The false matter must be in books or another document relevant or useful to a proceeding.
Actual evasion unnecessary
Subsection (2) removes any need to prove that the second person actually evaded tax, penalty or interest.
Punishment
The current provision states simple imprisonment up to two years and fine.
What Section 483 says
"If any person (herein referred to as the first person) wilfully and with intent to enable any other person (herein referred to as the second person) to evade any tax or interest or penalty chargeable and imposable under this Act, makes or causes to be made any entry or statement which is false and which the first person either knows to be false or does not believe to be true, in any books of account or other document relevant to or useful in any proceedings against the first person or the second person, under this Act, the first person shall be punishable with simple imprisonment for a term up to two years and with fine."
No need to prove actual evasion
"For the purposes of establishing the charge under this section, it shall not be necessary to prove that the second person has actually evaded any tax, penalty or interest chargeable or imposable under this Act."
Applying Section 483 in practice
Two-person structure. The “first person” wilfully makes or causes an entry or statement in a relevant book or document that the person knows is false or does not believe to be true, with intent to enable a “second person” to evade tax, interest or penalty. The prosecution need not prove the second person actually succeeded in evasion.
Hypothetical example
An adviser knowingly fabricates an invoice to support a client's deduction; actual acceptance of the deduction is not required by subsection (2). The section states simple imprisonment up to two years and fine.
Step-by-step flow for applying Section 483
- 1
Did the first person make, or cause to be made, an entry or statement in books of account or another document?
The books or document must be relevant to or useful in any proceeding under the Act against the first person or the second person.
- No: Section 483 does not apply.
- Yes: Go to the next step.
- 2
Was the entry false, and did the first person know it to be false or not believe it to be true?
- No: No offence under Section 483.
- Yes: Go to the next step.
- 3
Was it done wilfully and with intent to enable the second person to evade tax, interest or penalty?
- No: No offence under Section 483.
- Yes: Go to the next step.
- 4
Is actual evasion by the second person required?
No. Section 483(2) says it is not necessary to prove that the second person actually evaded any tax, penalty or interest.
- 5
Punishment
Simple imprisonment up to two years and fine. Imprisonment and fine are both stated, and there are no amount-based tiers.
Practical checklist
Do
- identify both persons, the entry, why it is false, the first person's knowledge and purpose, and the document's relevance.
Avoid
- Do not assume the charge fails merely because the second person did not actually succeed in evading tax, interest or penalty.
Illustrative example
Worked example: a supplier records bogus sales to help a buyer
Hypothetical facts (illustration only, not a real taxpayer): A supplier records in its own books sales invoices of ₹40,00,000 to a buyer for goods never supplied (assumed figure). The aim is to let the buyer claim higher expenses. The buyer's assessment has not yet been completed.
Entry
The supplier (first person) made false entries in its own books, which are relevant to proceedings against the buyer (second person).
Knowledge and intent
The supplier knew the goods were never supplied and made the entries to help the buyer evade tax.
No need to show actual evasion
Under Section 483(2), the charge can be established even though the buyer's assessment is pending and no evasion has yet been proved.
Punishment
Simple imprisonment up to two years and fine for the supplier.
Outcome
- On these assumed facts the supplier is exposed to prosecution under Section 483.
- The buyer's own liability is examined separately, for example under Section 478 or Section 482.
Frequently asked questions
What is the punishment under Section 483?
Simple imprisonment for a term up to two years and with fine.
Does the second person need to have actually evaded tax for the offence to apply?
No - Section 483(2) makes clear that it is not necessary to prove that the second person actually evaded any tax, penalty or interest for the charge against the first person to be established.
Need help applying this provision to your situation?
Talk to our tax team about a books-of-account matterLast updated 10 October 2026