Is the Centre planning to decriminalise minor I-T offences in 100 days?

The central government may decriminalize minor income tax offences, replacing prosecution with penalties to enhance ease of doing business. This shift, reported by MoneyControl, aims to address long-standing industry demands. \r

Internal discussions are determining thresholds for compounding offences, moving away from prosecuting minor infractions like delayed TDS payments, which currently can result in significant penalties, including imprisonment for company directors. Instead, such delays may incur civil penalties. \r

The 2024 Interim Budget already waived trivial direct tax demands, and further steps post-elections are expected to foster trust between taxpayers and authorities, boosting business ease.