Section 490
Section 490: presumption as to culpable mental state
Section 490 is a general rule that applies across every prosecution brought under the Income-tax Act, 2025. Where an offence requires a "culpable mental state" - broadly, that the accused acted knowingly or intentionally - the court starts by presuming that mental state existed. It is then up to the accused to prove they did not have it.
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 490 says
"In any prosecution for any offence under this Act, which requires a culpable mental state on the part of the accused, the court shall presume the existence of such mental state but it shall be a defence for the accused to prove the fact that he had no such mental state with respect to the Act charged as an offence in that prosecution."
So the presumption works against the accused by default - the court assumes the necessary mental state was present - but the accused can rebut it by proving they did not have that state of mind.
What "culpable mental state" means
The section gives this term a wide meaning: it "includes intention, motive or knowledge of a fact or belief in, or reason to believe, a fact."
The standard of proof
Section 490(3) sets a high bar for what counts as "proved" for these purposes: "a fact is said to be proved only when the court believes it to exist beyond reasonable doubt and not merely when its existence is established by a preponderance of probability."
This means the ordinary civil-law standard (more likely than not) is not enough - the fact must be established to the criminal standard of beyond reasonable doubt.
Frequently asked questions
Does the tax department have to prove I intended to commit the offence?
No. Under Section 490, once a prosecution is brought for an offence requiring a culpable mental state, the court presumes that mental state existed. The burden shifts to the accused to prove they did not have it.
What does "culpable mental state" cover?
As defined in Section 490(2), it includes intention, motive, knowledge of a fact, or belief in, or reason to believe, a fact.
What standard of proof applies to facts under this section?
Section 490(3) requires the court to believe the fact exists beyond reasonable doubt - a mere preponderance of probability is not sufficient.
Want this applied to your actual filing, not just explained?
Talk to our tax team about a prosecution noticeLast updated 9 September 2026