Punishment for second and subsequent offences.

485

If any person convicted of an offence under sections 476, 477, 478(1), 479, 480, 482 or 484 is again convicted of an offence under any of the said sections, he shall be punishable for the second and for every subsequent offence with rigorous imprisonment for a term which shall not be less than six months but which may extend to seven years and shall also be liable to fine.

Explanation

Section Summary:

Section 485 of the new income tax law deals with punishments for repeat offenders who are convicted of specific tax-related offences under sections 476, 477, 478(1), 479, 480, 482, or 484. The section imposes stricter penalties for second and subsequent convictions, including mandatory imprisonment and fines.

Key Changes:

• Stricter Penalties for Repeat Offences: Previously, the penalties for repeat offences were less severe. The new law mandates rigorous imprisonment for a minimum of six months and up to seven years, along with fines, for second and subsequent convictions.
• Specific Offences Covered: The section applies to repeat offences under sections 476, 477, 478(1), 479, 480, 482, or 484, which include offences like falsification of accounts, fraud, and wilful evasion of tax.

Practical Implications:

• Taxpayers and Businesses: Individuals or entities repeatedly engaging in tax fraud or evasion will face harsher consequences, including mandatory imprisonment. This aims to deter repeat offences.
• Compliance Processes: Tax authorities may intensify scrutiny of individuals or businesses with prior convictions to ensure compliance and prevent repeat offences.

Critical Concepts:

• Rigorous Imprisonment: This refers to imprisonment with hard labour, as opposed to simple imprisonment. It signifies a more severe form of punishment.
• Repeat Offences: A second or subsequent conviction under the specified sections triggers the enhanced penalties under this section.

Compliance Steps:

• Avoid Repeat Offences: Taxpayers and businesses must ensure strict compliance with tax laws to avoid convictions under the specified sections.
• Maintain Accurate Records: Proper documentation and adherence to tax filing requirements can help prevent unintentional violations.

Examples:

• Scenario 1: A business owner is convicted under section 477 for falsifying accounts to evade taxes. If the same owner is later convicted again under section 477, they will face a minimum of six months of rigorous imprisonment and a fine.
• Scenario 2: An individual is convicted under section 480 for wilful tax evasion. If they commit a similar offence later, they will be subject to the enhanced penalties under Section 485.

This section reinforces the government's focus on deterring tax fraud and evasion by imposing stricter penalties on repeat offenders.