Section 278A of the Income-tax Act, 1961: Punishment for Second and Subsequent Offences
Section 278A deals with enhanced punishment when a person already convicted of specified income-tax offences is convicted again. The corresponding provision under the Income-tax Act, 2025 is Section 485.
1. Meaning and purpose of Section 278A
Section 278A is a repeat-offender provision in Chapter XXII (Offences and Prosecutions) of the Income-tax Act, 1961. It applies when a person previously convicted of one of the offences specified in that section is subsequently convicted of an offence within the same specified group. It is not triggered merely by a second notice, assessment, tax demand or allegation.
2. Offences covered by the provision
The statutory list includes the following provisions, subject to their applicability for the relevant period:
| Section | Nature of offence |
|---|---|
| 276B | Failure to pay specified tax deducted at source or other covered amounts to the Central Government. |
| 276BB | Failure to pay tax collected at source to the Central Government; expressly included in Section 278A with effect from 1 April 2022. |
| 276C(1) | Wilful attempt to evade tax, penalty or interest, as specified in that subsection. |
| 276CC | Failure to furnish a return of income in the circumstances prescribed by law. |
| 276DD and 276E | Historical offences relating to certain deposit and repayment requirements; these provisions were omitted and their relevance is historical. |
| 277 | False statement in verification, accounts or statements, with the prescribed knowledge or belief. |
| 278 | Abetment or inducement of false returns, accounts, statements or specified evasion offences. |
3. Conditions for enhanced punishment
- There must be an earlier conviction under a provision covered by Section 278A.
- There must be a further conviction under one of the provisions covered by the repeat-offender rule.
- The prosecution must establish the statutory conditions applicable to the particular charge.
- Procedural requirements for prosecution, including sanction where required, continue to apply.
4. Punishment and the Finance Act, 2026 changes
Older versions of Section 278A prescribed rigorous imprisonment of at least six months and up to seven years, together with a fine. That historical text should not be presented as the unqualified current punishment.
Following the 2026 rationalisation, the Income Tax Department's official penalties and prosecutions reference reports imprisonment up to three years and a fine for enhanced punishment for repeat offences. Readers should consult the precise amended wording and commencement provisions before relying on a punishment range for an offence occurring around the transition.
5. Corresponding Section 485 under the Income-tax Act, 2025
The Income-tax Act, 2025 generally came into force on 1 April 2026. The Income Tax Department's official provision navigator maps Section 278A of the 1961 Act to Section 485 of the 2025 Act, both dealing with punishment for second and subsequent offences. The applicable enactment depends on the relevant tax period, offence and statutory savings provisions.
Section 536 of the 2025 Act addresses repeal and savings. Consequently, the commencement of the new Act does not, by itself, mean that every prosecution relating to an earlier period disappears.
6. Practical examples
Example A: A person convicted for a covered TDS remittance offence who is subsequently convicted of another offence included in the repeat-offender provision may face the enhanced punishment, subject to the applicable law and facts.
Example B: An assessee receiving two notices for late filing has not thereby become a repeat offender under Section 278A. The provision concerns qualifying convictions, not merely repeated compliance failures.
7. Related legal provisions
Section 278AA addresses reasonable cause in specified prosecution cases. Sections 278B and 278C address offences by companies and Hindu undivided families. Section 278E concerns the presumption of culpable mental state, and Section 279 governs institution and certain procedural aspects of prosecutions. Each operates according to its own statutory conditions.
8. Official statutory references
- Income Tax Department: Section 278A of the Income-tax Act, 1961
- Income Tax Department: Penalties and Prosecutions, updated for Finance Act 2026
- Income-tax Act, 2025 as amended by Finance Act, 2026 (official PDF)
- Income Tax Department: Income-tax Act, 2025 resources and transition guidance
- Budget 2026 FAQs: Partial decriminalisation of prosecution provisions
- CBDT Circular 23/2022: Inclusion of Section 276BB in repeat-offence provisions
Disclaimer: This article is for general legal information. The amended statutory text, commencement dates, savings clauses and case-specific facts determine the legal position.