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CA Final · Direct Tax Laws & International Taxation · Tax Planning, Tax Avoidance and Tax Evasion

Rohan Mehta was involved in concealing income along with a firm's partners. The Central Government wants his evidence against the others. As per section 519 of the Income-tax Act, 2025, which statement is correct about tendering immunity to Rohan?

The Central Government may, for reasons recorded in writing, tender immunity from prosecution under the Act, the Bharatiya Nyaya Sanhita, 2023 or other Central Acts, and from penalty, to a person concerned in concealment, provided he makes a full and true disclosure of the whole circumstances.

  1. AImmunity can be tendered only from penalty, never from prosecution
  2. BImmunity can be tendered from prosecution under the Act, the Bharatiya Nyaya Sanhita, 2023 or other Central Acts, and from penalty, on condition of full and true disclosureCorrect
  3. CImmunity is available automatically once the person files a revised return
  4. DImmunity can be tendered only by the Assessing Officer without recording reasons

Explanation

Section 519(1) lets the Central Government, for reasons recorded in writing, tender immunity from prosecution (under this Act, the BNS, 2023 or other Central Acts) and from penalty, on condition of full and true disclosure. The option limiting it to penalty is wrong since prosecution immunity is expressly covered.

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