BNS Section 332 - Tax Evasion

Whoever willfully attempts in any manner to evade any tax, duty, cess, or levy lawfully chargeable, by suppression of facts, fake invoices, or other fraudulent means.

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Non-bailable, Cognizable

Official Text

“Whoever willfully attempts to evade any tax, duty, cess, or levy, by suppression, false returns, or fraudulent devices, shall be punished.”

Legal Analysis

Elements to Prove:

  • Tax legally chargeable.
  • Willful attempt to evade.
  • Use of suppression/false documents/fraudulent device.

Potential Defenses:

  • No willful intent.
  • Full disclosure and bona fide claim.
  • Computation dispute without concealment.

Practical Examples

What Constitutes the Offense:

Issuing bogus invoices, suppressing turnover, routing sales off-book, hiding income.

What Doesn't Constitute:

Legitimate deductions, interpretational disputes disclosed in returns, clerical mistakes corrected.

Punishment

Imprisonment up to 7 years, and Fine

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