Expanding the scope of immunity from penalty or prosecution under section 440 of the Act- Section 440 of the Act, provides, inter-alia, procedure of granting immunity by the Assessing Officer from imposition of penalty or prosecution, if assessee fulfils the following conditions, namely: – (a) the tax and interest payable as per Assessment order, has… Read More »
Rationalisation of tax rate under section 195 and penalty under section 443 in respect of certain Income: Section 195 of the Income-tax Act, 2025 (hereinafter referred as ‘the Act’) provides for tax on income referred to in section 102 to 106. Section 102 to 106 provides for income on account of, unexplained credits, unexplained investment,… Read More »
Increase in maximum amount of penalty in section 466 of the Act: Section 254 of the Income-tax Act, 2025 (hereinafter referred as ‘the Act’) provides the power to the income-tax authorities to collect information from the premises where business or profession is carried out, by directing the proprietor or employee or any other person, who… Read More »
Imposition of penalty for under-reporting or misreporting of income within Assessment Order: Under the existing provisions of the Income-tax Act, first an assessment order is passed and based on the findings or additions made in it and subject to the status of appellate proceedings, penalty is initiated in the assessment order by the Assessing Officer.… Read More »
Rationalisation of Penalties into Fee Section 446 of the Act, provides penalty for failure to get accounts audited. It further provides that, if any person fails, without reasonable cause, to get his accounts audited in respect of any previous year or years relevant to an assessment year or to obtain a report of such audit… Read More »
Referencing the time limit to complete block assessment to the initiation of search or requisition Section 296 of the Act, provides for time limit for completing a block assessment. An assessment or reassessment order under Section 294 (procedure for block assessment) must be completed within 12 months from the end of the quarter in which… Read More »
Rationalizing the period of block in case of other persons Section 295 of the Act, provides, inter-alia, that where Assessing officer is satisfied that any undisclosed income belongs to or pertains to or relates to any person (herein after referred to as the ‘other person’), other than the person (herein after referred to as the… Read More »
Rationalization of prosecution proceedings Income-tax Act, 2025 (hereinafter referred as the ‘Act’) has various provisions in chapter XXII which imposes criminal liability on assessee and prescribes imprisonment including rigorous imprisonment which span from three months to seven years for various offences including falsification of books of accounts, failure to credit TDS/TCS deducted, tendering false statement,… Read More »
C. RATIONALISING PENALTY AND PROSECUTION Relaxation of conditions for prosecution under the Black Money Act The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 [the Black Money Act] provides for penal and prosecution measures in cases of wilful non-disclosure of foreign income and assets by residents. Sections 49 and 50… Read More »
Foreign Assets of Small Taxpayers – Disclosure Scheme, 2026 (FAST-DS 2026) The Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 was enacted to address the issue of undisclosed foreign income and assets held by resident taxpayers. At the time of its introduction, a one-time compliance window was provided from 1… Read More »