Chapter XXII - Offences and Prosecution
Section 484
Section 484: abetment of false return, etc.
Section 484 punishes abetting or inducing another person to either file a false income declaration, account or statement, or to commit the wilful tax-evasion offence under section 478(1). As with several offence provisions in this Chapter, the punishment is graded by the amount of tax, penalty or interest involved.
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Need advice on Section 484?
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 abets or induces in any manner another person––
(a) to make and deliver an account or a statement or declaration relating to any income chargeable to tax which is false and which he either knows to be false or does not believe to be true; or
(b) to commit an offence under section 478(1),
he shall be punishable—
(i) with simple imprisonment for a term up to two years, or with fine, or with both, where the amount of tax, penalty or interest which would have been evaded, if the declaration, account or statement had been accepted as true, or which is wilfully attempted to be evaded, exceeds fifty lakh rupees; or
(ii) with simple imprisonment for a term up to six months, or with fine, or with both, where the amount of tax, penalty or interest which would have been evaded, if the declaration, account or statement had been accepted as true, or which is wilfully attempted to be evaded, exceeds ten lakh rupees but does not exceed fifty lakh rupees; or
(iii) with fine, in any other case.
Introduction
Section 484 reaches a person who abets or induces someone else to make a knowingly false tax account, statement or declaration, or to commit the section 478(1) offence. The Finance Act, 2026 made the punishment tiered by the amount that would have been or was attempted to be evaded.
Key takeaways
Another person
The accused abets or induces another person’s false statement or section 478(1) conduct.
Knowledge condition
For a false account, statement or declaration, the accused knows it false or does not believe it true.
Current tiers
The amount bands are above ₹50 lakh, above ₹10 lakh through ₹50 lakh, and other cases.
What Section 484 says
"If a person abets or induces in any manner another person--"
- To make and deliver an account or a statement or declaration relating to any income chargeable to tax which is false and which he either knows to be false or does not believe to be true; or
- To commit an offence under section 478(1).
Punishment
Where either limb applies, the person shall be punishable--
- With simple imprisonment for a term up to two years, or with fine, or with both - where the amount of tax, penalty or interest which would have been evaded (if the declaration, account or statement had been accepted as true), or which is wilfully attempted to be evaded, exceeds fifty lakh rupees.
- With simple imprisonment for a term up to six months, or with fine, or with both - where that amount 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 this graded punishment structure was substituted by the Finance Act, 2026, with effect from 1 April 2026, replacing an earlier two-tier structure of rigorous imprisonment (not less than six months, extendable to seven years, with fine, where the amount exceeded twenty-five lakh rupees) or rigorous imprisonment (not less than three months, extendable to two years, with fine) in any other case.
Step-by-step flow for applying Section 484
- 1
Did the person abet or induce another person?
"In any manner" is wide; the act is directed at another person.
- No: Section 484 does not apply.
- Yes: Go to the next step.
- 2
What was the other person abetted or induced to do?
Clause (a): make and deliver a false account, statement or declaration relating to income chargeable to tax, which the abettor knows to be false or does not believe to be true. Clause (b): commit an offence under section 478(1).
- Neither: Section 484 does not apply.
- Clause (a) or (b): Go to the next step.
- 3
Quantify the amount
The tax, penalty or interest that would have been evaded if the declaration, account or statement had been accepted as true, or that is wilfully attempted to be evaded.
- 4
Apply the tier
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
- Identify the act of abetting or inducing and whether the allegation concerns a knowingly false income account, statement or declaration, or an offence under section 478(1).
- Check the amount that would have been evaded if the false material had been accepted as true, or the amount wilfully attempted to be evaded, as applicable.
Avoid
- Do not treat every instance of preparing documents as proof of the specified abetment or inducement; examine the conduct and statutory conditions.
Illustrative example
Worked example: an adviser induces a false statement
Hypothetical facts (illustration only, not a real taxpayer): An adviser persuades a client to deliver a statement of income omitting rental receipts the adviser knows exist. Had the statement been accepted as true, tax and interest of ₹14,00,000 would have been evaded (assumed figure).
Abetment
The adviser induced another person (the client).
Clause
The statement relates to income chargeable to tax and the adviser knew it was false, so clause (a) applies.
Tier
₹14,00,000 exceeds ₹10 lakh but not ₹50 lakh, so clause (ii) applies: simple imprisonment up to six months, or fine, or both.
Client
The client's own liability is separate, for example under Section 482 or Section 478.
Outcome
- On these assumed facts the adviser falls in the middle tier of Section 484.
- Section 484 is listed in Section 485, so a later conviction under a listed section attracts the enhanced punishment.
Frequently asked questions
What does Section 484 punish?
Abetting or inducing another person to make and deliver a false account, statement or declaration relating to taxable income, or to commit the wilful tax-evasion offence under section 478(1).
How is the punishment determined?
By the amount of tax, penalty or interest which would have been evaded if the false declaration, account or statement had been accepted as true (or which is wilfully attempted to be evaded) - 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.
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Talk to our tax team about a return or declaration matterLast updated 10 October 2026