Section 519: power to tender immunity from prosecution

When immunity can be offered

Where the Central Government is of the opinion that, with a view to obtaining the evidence of a person who appears to be directly or indirectly concerned in, or privy to, concealment of income or evasion of tax payment, it is necessary or expedient to do so, it may - for reasons recorded in writing - tender to that person: immunity from prosecution for any offence under this Act, under the Bharatiya Nyaya Sanhita, 2023, or under any other Central Act in force; and immunity from imposition of any penalty under this Act.

This is on condition of the person making a full and true disclosure of the whole circumstances relating to the concealment of income or evasion of payment of tax on income.

Effect of accepted immunity

A tender of immunity made to, and accepted by, the person concerned renders that person immune - to the extent the immunity extends - from prosecution for the offence covered by the tender, and from the imposition of any penalty under the Act.

When immunity can be withdrawn

If it appears to the Central Government that the person to whom immunity was tendered has not complied with the conditions on which it was tendered, is wilfully concealing anything, or is giving false evidence, the Central Government may record a finding to that effect - and the immunity is then deemed to have been withdrawn.

Once withdrawn, the person may be tried for the offence covered by the original tender of immunity, or for any other offence they appear to have been guilty of in connection with the same matter, and also becomes liable to any penalty under the Act that would otherwise have applied.

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