Section 485 Income Tax Act 2025: What Is the Punishment for Repeat Tax Offences?

1. What does Section 485 provide?

The statutory heading is Punishment for second and subsequent offences. Section 485 applies where a person has already been convicted of an offence under one of the specified sections and is again convicted of an offence under any of those same listed sections. The second conviction need not necessarily be under the identical section as the first; the statute uses the expression any of the said sections.

The enhanced sentencing provision is triggered by the relevant convictions. A tax demand, penalty order, show-cause notice or prosecution complaint alone is not a conviction.

2. Which offences are covered by Section 485?

The following provisions are expressly listed:

Important: Section 485 expressly names Section 478(1), not Section 478(2). It also does not list every prosecution offence in the Act; for example, Section 483 is not included in this particular list.

3. What is the punishment for a second or subsequent offence?

Section 119 of the Finance Act, 2026 replaced the earlier sentencing words. Both imprisonment and fine are specified in the amended provision; it is not framed as a choice between imprisonment and fine. The statute does not fix a specific rupee amount for the fine in Section 485.

The minimum and maximum terms stated here apply to Section 485 itself. The punishment for a first conviction under the individual offence section may be different.

4. What must be established before Section 485 applies?

1. Earlier conviction: The person must have been convicted of an offence under Section 476, 477, 478(1), 479, 480, 482 or 484.
2. Another conviction: The same person must again be convicted under any of those listed provisions.
3. Applicable sentencing law: The court must consider the law applicable to the offence and the conviction, including commencement and any relevant transitional principles.

Section 485 does not itself create a new tax-filing obligation. It is a sentencing provision that operates in relation to the offences expressly identified in its text. Whether the prosecution proves the ingredients of the underlying offence is a separate question.

5. Relevant statutory and legal expressions

Second or subsequent offence

For this section, a further conviction after an earlier conviction for an offence in the specified statutory list.

Conviction

A criminal court's determination that the accused is guilty of an offence; it is different from an income-tax assessment or civil penalty.

Simple imprisonment

Imprisonment without the compulsory hard labour associated with rigorous imprisonment.

Fine

A monetary punishment imposed by the criminal court, distinct from tax, interest and administrative penalty.

Section 478(1)

The particular subsection concerning wilful attempts to evade tax, penalty or interest, or under-reporting of income, which is specifically mentioned in Section 485.

6. Practical illustrations

Example 1: Two different listed offences

A person is convicted under Section 477 for a qualifying TCS default. Later, the same person is convicted under Section 482 for knowingly making a false verification. Because both provisions appear in Section 485, the later conviction can attract the enhanced sentencing rule, subject to the facts and applicable law.

Example 2: Penalty without criminal conviction

An assessee receives an income-tax penalty order and is later prosecuted under Section 479. The earlier penalty order by itself does not establish the prior criminal conviction required for Section 485.

Example 3: Offence outside the statutory list

A prior conviction solely under Section 483 does not, by itself, satisfy the earlier-conviction requirement of Section 485, because Section 483 is not one of the provisions expressly listed.

7. Related prosecution provisions

Section 484 deals with abetment of false returns; Section 482 deals with false verification. Section 486 provides a reasonable-cause protection in specified failures under Sections 476 and 477. Section 487 addresses offences by companies, while Section 491 deals with the competent authority for initiating prosecutions. These provisions should be read together where the facts warrant it.

Under the Income-tax Act, 1961, a broadly corresponding repeat-offence provision was Section 278A. The wording and the law applicable to a particular period should be checked rather than assuming both enactments are identical.

8. Frequently asked questions

Is imprisonment mandatory for a repeat offence under Section 485?

The amended section states simple imprisonment for not less than six months and up to three years and fine, where the statutory requirements are met.

Does a previous income-tax penalty count as a prior conviction?

No. Section 485 requires a previous criminal conviction under one of the expressly listed sections.

Must both convictions be under the same section?

No. The wording extends to a later conviction under any of the listed sections, following an earlier conviction under one of them.

Did the Finance Act, 2026 reduce the maximum imprisonment?

Yes. With effect from 1 April 2026, the provision specifies simple imprisonment of six months to three years and fine, replacing the earlier rigorous imprisonment range of six months to seven years and fine.

Does Section 485 apply to a conviction under Section 478(2)?

Section 485 expressly lists Section 478(1), not Section 478(2). Its application should be assessed according to the exact offences of conviction.

9. Official statutory sources

• Income-tax Act, 2025, as amended by the Finance Act, 2026 - Income Tax Department
• Finance Act, 2026 - Section 119 amending Section 485

Editorial note: This article explains the statutory text as amended with effect from 1 April 2026. The facts, offence dates, applicable procedural law and judicial decisions may affect a particular case.