Non-Filing of ITR and Non-Payment of Taxes May Lead to Prosecution u/s 276C

Vivek Jalan | Last updated: 21 November 2025

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Failing to file your Income Tax Return (ITR) or pay your taxes can lead to prosecution under Section 276C of the Income Tax Act. This section penalises individuals who intentionally attempt to evade tax or under-report their income, potentially resulting in imprisonment and fines. The severity of the punishment depends on the amount involved, with higher amounts leading to longer prison sentences. While some tax failures, like not crediting Tax Deducted at Source (TDS), are sufficient for penalties without needing to prove intent, 'willful evasion' under Section 276C requires demonstrating deliberate intent. However, if you declare tax payable in your ITR and pay it, a genuine oversight in payment by the due date may not be considered willful evasion.

Non-filing of ITR and non-payment of taxes can cause prosecution u/s Section 276 C, which provides that a person who willfully attempts to evade tax, penalty, or interest under the Income Tax Act, 1961, or under-reports income, may be subject to rigorous imprisonment and fines. If the amount evaded

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About the Author

Vivek Jalan

DESIGNATED PARTNER

Mr. Vivek Jalan is a FCA, Qualified LL.M (Constitutional Law) and LL.B. He is the Chairman of The Fiscal Affairs and Taxation Committee of The Bengal Chamber of Commerce and Industry. He is the Convenor on Indirect Taxes of the CII- Economic Affairs and Taxation Committee (ER); He is also a visiting faculty for Indirec ... Read more

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