Section 484
Section 484: abetment of false return, etc.
Section 484 punishes abetting or inducing another person to either file a false income declaration, account or statement, or to commit the wilful tax-evasion offence under section 478(1). As with several offence provisions in this Chapter, the punishment is graded by the amount of tax, penalty or interest involved.
What Section 484 says
"If a person abets or induces in any manner another person--"
- To make and deliver an account or a statement or declaration relating to any income chargeable to tax which is false and which he either knows to be false or does not believe to be true; or
- To commit an offence under section 478(1).
Punishment
Where either limb applies, the person shall be punishable--
- With simple imprisonment for a term up to two years, or with fine, or with both - where the amount of tax, penalty or interest which would have been evaded (if the declaration, account or statement had been accepted as true), or which is wilfully attempted to be evaded, exceeds fifty lakh rupees.
- With simple imprisonment for a term up to six months, or with fine, or with both - where that amount exceeds ten lakh rupees but does not exceed fifty lakh rupees.
- With fine, in any other case.
Recent change to the punishment structure
The Act's footnotes record that this graded punishment structure was substituted by the Finance Act, 2026, with effect from 1 April 2026, replacing an earlier two-tier structure of rigorous imprisonment (not less than six months, extendable to seven years, with fine, where the amount exceeded twenty-five lakh rupees) or rigorous imprisonment (not less than three months, extendable to two years, with fine) in any other case.
Frequently asked questions
What does Section 484 punish?
Abetting or inducing another person to make and deliver a false account, statement or declaration relating to taxable income, or to commit the wilful tax-evasion offence under section 478(1).
How is the punishment determined?
By the amount of tax, penalty or interest which would have been evaded if the false declaration, account or statement had been accepted as true (or which is wilfully attempted to be evaded) - imprisonment up to two years (or fine, or both) above ₹50 lakh, up to six months (or fine, or both) between ₹10 lakh and ₹50 lakh, and fine only below ₹10 lakh.
Related sections
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Talk to our tax team about a return or declaration matterLast updated 9 September 2026