Answer

1. F

   Facts

   Sec 276CC makes wilful failure to file an income tax return on time a criminal offence. The show cause is the department's step before filing a complaint in court. You have a chance now to file, explain and avoid prosecution.

2. P

   Provisions and law

   • Sec 276CC (now Sec 479)Prosecution for wilful failure to file a return on time; jail of 3 months to 2 years, or 6 months to 7 years where tax evaded exceeds ₹25 lakh
   • Sec 279, Income-tax Act 1961Prosecution needs sanction of a senior authority, and offences can be compounded
   • CBDT Circular 19/2019 (DIN on every communication)Every notice from the department must carry a computer generated Document Identification Number (DIN)
3. A

   Analysis

   Under Sec 276CC (now Sec 479) of the Income-tax Act 1961, a person who wilfully fails to file a return due under Sec 139(1), or in response to a Sec 142(1) or Sec 148 notice, can be prosecuted. The punishment ranges from 3 months to 2 years of rigorous imprisonment with fine, and 6 months to 7 years where the tax sought to be evaded exceeds ₹25 lakh. A prosecution needs sanction from a senior authority under Sec 279, which is why the show cause is issued first. Acting quickly, by filing pending returns and giving a reasoned reply, often ends the matter.

4. C

   Conclusion

   1. 1Verify the notice and DIN on the portal.
   2. 2List the years for which returns were not filed.
   3. 3Work out tax payable for those years.
   4. 4File pending returns and reply with reasons before the date.

General guidance from TaxSavvy’s library of money processes. Laws change; your Savvy confirms the answer on your exact case before anything is filed.