The government in a current provision declares to pardon all the taxpayers who have not deposited TDS up to Rs. 25 Lakhs or deliberately mentioned the incorrect income in their Income Tax Return. All the local tax officers are prohibited from filing a complaint against such taxpayers.
New Tax Laws Proposed by the Government
- So far, there was a jail of 3 months to 6 years (as situation demands) for those who were found guilty of not filing TDS. Current law denies such punishments.
- Likewise, there was imprisonment of 7 years for the taxpayers who were then found guilty of filing the incorrect income in their income tax return or committed a fraud up to Rs. 25 Lakhs. Current laws deny imprisonment for such taxpayers.
- Current law brings relief to the taxpayers who have not filed their income tax returns. No legal interrogations or penalties will be charged. Earlier, there were three months to seven years of imprisonment for such accusations.
Effective from 9 September 2019, current provisions are not the signs of complete relief for the ignorant taxpayers because accompanied by such provisions are some terms and conditions of the government which one needs to agree upon to get himself a clean chit.
Repeated Tax Frauds will Invite Imprisonment
Once pardoned for the mistake doesn’t mean one is allowed to continue with the same. As per the experts, the IT Department has issued a statement directing all the local tax authorities to allow relief only for one-time tax evasion. Repetitive fraud will lead to criminal prosecution and imprisonment. Punishment will be imposed after the approval of the collegium of two officers so that the case is not opinionated by a single officer.
To be noted: Rebate is granted only in case the tax evasion is up to Rs. 25 Lakhs.
