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CS Executive · Tax Laws and Practice · Procedural Compliance under Income Tax

Under the Income-tax Act, 2025, the Central Government tenders immunity from prosecution and penalty to a person concerned in concealment of income. If the person is later found to be giving false evidence and the Central Government records a finding to that effect, what is the consequence?

The immunity is deemed withdrawn once the Central Government records a finding of false evidence. The person can then be tried for the offence or related offences and also becomes liable to the penalty otherwise imposable under the Act.

  1. AImmunity continues but a fine is added
  2. BImmunity is deemed withdrawn and the person may be tried and become liable to penaltyCorrect
  3. COnly the penalty immunity is withdrawn; prosecution immunity remains
  4. DImmunity is withdrawn only if the court approves it

Explanation

Under section 519(3) and (4), on a recorded finding of non-compliance, wilful concealment or false evidence, immunity is deemed withdrawn. The person may then be tried for the offence or related offences and becomes liable to penalty. Partial withdrawal is not provided.

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