As amended by the Finance Act, 2026, section 478(1) of the Income-tax Act, 2025 punishes a wilful…

With effect from 1 April 2026, the Finance Act, 2026 substituted section 478(1); where the amount exceeds fifty lakh rupees, clause (a) now provides "simple imprisonment for a term up to two years", or fine, or both. As originally enacted, the section provided rigorous imprisonment of six months to seven years with fine above twenty-five lakh rupees. Section 478(1)(c) prescribes fine alone, with no imprisonment, only where the amount is ten lakh rupees or less.