Chapter XXIII - Miscellaneous
Section 519
Section 519: power to tender immunity from prosecution
Section 519 gives the Central Government power to offer immunity from prosecution and penalty to a person connected with concealment of income or evasion of tax, in exchange for a full and true disclosure - and it sets out when that immunity can later be withdrawn.
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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) The Central Government may, if it is of the opinion that with a view to obtaining the evidence of any person appearing to have been directly or indirectly concerned in or privy to the concealment of income or to the evasion of payment of tax on income it is necessary or expedient so to do, for reasons to be recorded in writing, tender to such person,—
(a) immunity from prosecution for any offence under this Act or under the Bharatiya Nyaya Sanhita, 2023 (45 of 2023), or under any other Central Act in force; and
(b) from imposition of any penalty under this Act on condition of his making a full and true disclosure of the whole circumstances relating to the concealment of income or evasion of payment of tax on income.
(2) A tender of immunity made to, and accepted by, the person concerned, shall, to the extent to which the immunity extends, render him immune from prosecution for any offence in respect of which the tender was made, or from the imposition of any penalty under this Act.
(3) If it appears to the Central Government that any person to whom immunity has been tendered under this section––
(a) has not complied with the conditions on which the tender was made; or
(b) is wilfully concealing anything; or
(c) is giving false evidence,
the Central Government may record a finding to that effect, and thereupon the immunity shall be deemed to have been withdrawn.
(4) The person whose immunity has been withdrawn under sub-section (3) may be tried for the offence in respect of which the tender of immunity was made or for any other offence of which he appears to have been guilty in connection with the same matter and shall also become liable to imposition of any penalty under this Act to which he would otherwise have been liable.
Introduction
Section 519 allows the Central Government, for recorded reasons, to tender conditional immunity to obtain evidence about income concealment or tax evasion. The protection extends only as far as the accepted tender and can be withdrawn if its conditions are breached.
Key takeaways
Evidence purpose
The Central Government may tender immunity to obtain evidence about income concealment or tax-payment evasion, with reasons recorded.
Full disclosure condition
The tender requires full and true disclosure of the circumstances.
Withdrawal
Non-compliance, wilful concealment or false evidence can lead to a recorded withdrawal of immunity.
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.
Step-by-step flow for applying Section 519
- 1
Does the person appear to be concerned in or privy to concealment of income or evasion of tax?
This can be direct or indirect involvement (Section 519(1)).
- No: Section 519 is not relevant.
- Yes: Go to the next step.
- 2
Is the Central Government of the opinion that a tender is necessary or expedient to obtain the person's evidence?
The reasons must be recorded in writing.
- No: No tender is made.
- Yes: Go to the next step.
- 3
What can be tendered?
Immunity from prosecution for any offence under this Act, the Bharatiya Nyaya Sanhita, 2023 or any other Central Act in force, and from penalty under this Act. The condition is a full and true disclosure of the whole circumstances.
- 4
Is the tender accepted?
Under Section 519(2), once made and accepted, the person is immune to the extent of the immunity, for the offences for which it was tendered or from penalty.
- 5
Has the person kept the conditions?
- No: conditions broken, wilful concealment or false evidence: The Central Government may record a finding; the immunity is deemed withdrawn, and the person may be tried and is liable to penalty (Section 519(3) and (4)).
- Yes: The immunity continues to the extent granted.
Practical checklist
Do
- Check the Government’s tender, its scope and conditions, and the person’s acceptance; a disclosure alone is not an accepted tender of immunity.
- Keep a complete record of the disclosure and compliance with the conditions. If withdrawal is in issue, examine the Government’s finding and the grounds stated in subsection (3).
Avoid
- Do not assume immunity extends to every offence or penalty beyond the extent of the accepted tender.
Illustrative example
Worked example: a group accountant's evidence
Hypothetical facts (illustration only, not a real taxpayer): Mr. Iqbal was the accountant of a trading group that hid sales. The Central Government, recording its reasons in writing, tenders him immunity from prosecution and penalty on condition of full and true disclosure. He accepts. Later, it emerges that he did not disclose one set of accounts he kept himself. All facts are assumed.
Eligibility
He appears to have been concerned in the concealment, so Section 519(1) can be used.
Tender and acceptance
On acceptance he is immune to the extent of the tender (Section 519(2)).
Non-disclosure
Holding back one set of accounts may amount to not complying with the condition or wilfully concealing something.
Withdrawal
If the Central Government records that finding, the immunity is deemed withdrawn. He may then be tried for the offence and for other offences in the same matter, and may be liable to penalty.
Outcome
- Immunity depends on full and true disclosure throughout.
- Withdrawal needs a finding recorded by the Central Government.
Frequently asked questions
Who can grant immunity under Section 519?
The Central Government, for reasons recorded in writing.
What must the person do to get immunity?
The Central Government must tender immunity under the stated conditions and the person must accept it. The condition is a full and true disclosure of the whole circumstances relating to concealment of income or evasion of payment of tax on income; protection extends only as far as the accepted tender.
Can immunity granted under Section 519 be taken away later?
Yes - if the Central Government finds the person hasn't complied with the conditions of the tender, is wilfully concealing something, or is giving false evidence, the immunity is deemed withdrawn, and the person can then be tried and penalised.
Need help applying this provision to your situation?
Talk to our tax team about this sectionLast updated 10 October 2026