Chapter XXII - Offences and Prosecution
Section 494
Section 494: disclosure of particulars by public servants
Section 494 is a confidentiality-protection offence aimed at government officials, not taxpayers. It punishes a public servant who furnishes information or produces a document in breach of the confidentiality restriction in section 258(3) of the Act.
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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) A public servant, who furnishes any information or produces any document in contravention of the provisions of section 258(3), shall be punishable with simple imprisonment up to one month, or with fine, or with both.
(2) No prosecution shall be instituted under this section except with the previous sanction of the Central Government.
Introduction
Section 494 concerns a public servant’s disclosure of information or production of a document contrary to section 258(3). Its present penalty wording reflects the Finance Act, 2026 amendment.
A prosecution also requires the Central Government’s previous sanction. The confidentiality rule in section 258(3) must be read to assess the underlying conduct.
Key takeaways
Who may commit the offence
The statutory subject is a public servant, not an ordinary taxpayer.
Cross-reference controls
The prohibited disclosure is one that contravenes section 258(3).
Prior sanction
The Central Government’s previous sanction is required to institute prosecution.
What Section 494 says
"A public servant, who furnishes any information or produces any document in contravention of the provisions of section 258(3), shall be punishable with simple imprisonment up to one month, or with fine, or with both."
A footnote to the source text records that this punishment was substituted for the earlier wording "imprisonment which may extend to six months, and shall also be liable to fine" by the Finance Act, 2026, with effect from 1 April 2026.
Sanction required for prosecution
"No prosecution shall be instituted under this section except with the previous sanction of the Central Government."
Applying Section 494 in practice
Two gates. A public servant who furnishes information or produces a document contrary to section 258(3) can face up to one month's simple imprisonment, fine or both. A prosecution cannot be instituted without prior Central Government sanction.
Step-by-step flow for applying Section 494
- 1
Is the person a public servant?
Section 494(1) applies only to a public servant.
- No: Section 494 does not apply to that person.
- Yes: Go to the next step.
- 2
Did the public servant furnish information or produce a document?
- No: There is no act covered by Section 494(1).
- Yes: Go to the next step.
- 3
Was it done in contravention of Section 258(3)?
Section 258(3) lets the Central Government direct, by notification, that no information or document be furnished or produced by a public servant on specified matters for a specified class of assessees, except to authorities named in that notification. Check the notification that applies.
- No: Section 494(1) is not attracted.
- Yes: Go to the next step.
- 4
Has the Central Government given previous sanction for prosecution?
- No: Under Section 494(2), no prosecution shall be instituted under this section.
- Yes: Go to the next step.
- 5
What punishment does the section provide?
Simple imprisonment up to one month, or fine, or both (Section 494(1)). The section does not state an amount of fine.
Practical checklist
Do
- Identify the public servant, the specific information or document, and the section 258(3) restriction.
- Verify prior Central Government sanction before a prosecution under section 494 is instituted.
- duty under section 258(3), disclosure and recipient, sanction instrument and date.
Avoid
- Do not use the former six-month punishment wording after the 2026 substitution.
Illustrative example
Worked example: a document shared outside a notification
Hypothetical facts (illustration only, not a real taxpayer): Assume a notification under Section 258(3) directs that documents about a stated class of assessees may be furnished only to the authorities named in it. A public servant who holds such a document gives a copy to a body that is not named in the notification.
Person
The person who gave the copy is a public servant, so Section 494(1) can apply.
Act
Producing a copy of the document to the body is producing a document.
Contravention
The body is not one of the authorities named in the assumed Section 258(3) notification, so the act is in contravention of Section 258(3).
Sanction
Prosecution can be instituted only with the previous sanction of the Central Government under Section 494(2).
Punishment if convicted
The court may impose simple imprisonment up to one month, or a fine, or both.
Outcome
- On these assumed facts, the public servant may be prosecuted under Section 494, but only after Central Government sanction.
- Whether an act is a contravention depends on the actual terms of the Section 258(3) notification.
Frequently asked questions
Who can be prosecuted under Section 494?
A public servant who furnishes information or produces a document in breach of the confidentiality restriction under section 258(3) of the Act - this offence applies to officials, not ordinary taxpayers.
What is the punishment under Section 494?
Simple imprisonment up to one month, or fine, or both.
Can this offence be prosecuted by anyone?
No - Section 494(2) requires the previous sanction of the Central Government before prosecution can be instituted.
Has the punishment under Section 494 changed recently?
Yes - the source text notes that the punishment was substituted by the Finance Act, 2026 (with effect from 1 April 2026), replacing an earlier provision of imprisonment up to six months plus fine with the current simple imprisonment up to one month, or fine, or both.
Need help applying this provision to your situation?
Talk to our tax team about this sectionLast updated 10 October 2026