Section 488
Section 488: offences by Hindu undivided family
Section 488 is the HUF counterpart to Section 487's company-liability rule. It makes the karta of a Hindu undivided family (HUF) responsible when the HUF commits an offence under the Act, subject to a due-diligence defence, and separately extends liability to any member whose consent, connivance or neglect contributed to the offence.
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.
Liability of the karta
"Where an offence under this Act has been committed by a Hindu undivided family, the karta thereof shall be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly."
Due-diligence defence for the karta
The karta is not liable to any punishment if he proves that the offence was committed without his knowledge, or that he had exercised all due diligence to prevent its commission.
Liability of other members
Irrespective of the rule and defence above, where an offence under the Act has been committed by a Hindu undivided family and it is proved that it was committed with the consent or connivance of, or is attributable to any neglect on the part of, any member of the HUF, that member shall also be deemed to be guilty of the offence and shall be liable to be proceeded against and punished accordingly.
Frequently asked questions
Who is primarily liable when an HUF commits an offence under the Act?
The karta of the Hindu undivided family is deemed guilty of the offence and liable to be proceeded against and punished accordingly, under Section 488(1).
Is there a defence available to the karta?
Yes - the karta is not liable to punishment if he proves the offence was committed without his knowledge, or that he had exercised all due diligence to prevent it.
Can a member of the HUF other than the karta be held liable?
Yes - any member is also deemed guilty and liable to be proceeded against and punished if it is proved the offence was committed with that member's consent or connivance, or is attributable to that member's neglect.
Related sections
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Talk to our tax team about an HUF prosecution matterLast updated 9 September 2026