Finance Act, 1980

Chapter VIII


Amendment of section 516 (penalty for false statement made to obtain allowance) of Income Tax Act, 1967.

59.—In relation to offences committed after the passing of this Act, the following section shall be substituted for section 516 of the Income Tax Act, 1967 :

“516.—A person who—

(a) knowingly makes any false statement or false representation—

(i) in any return or statement made with reference to tax, or

(ii) for the purpose of obtaining any allowance, reduction, rebate or repayment of tax either for himself or for any other person,


(b) knowingly and wilfully aids, abets, assists, incites or induces another person—

(i) to make or deliver a false or fraudulent account, return, list, declaration or statement with reference to property, profits or gains or to tax, or

(ii) unlawfully to avoid liability to tax by failing to disclose the full amount of his income from all sources,

shall be guilty of an offence and shall be liable, on summary conviction, to imprisonment for a term not exceeding six months.”.