Latest Income Tax Rule 2019: Tax defaulters can’t escape prosecution by just paying stiff penalty: Well, reports are coming that the Income Tax department has made some serious plans against the offenses of escaping the Income Tax. Sources are suggesting that under the black money and benami laws anybody who would try to escape the Income Tax would not be able to escape it by just paying the tax demand, penalty and interest. Overall, it is really bad news for the people who are offenders and are trying to escape the penalty.
New Income Tax Rules 2019
Also, the reports are coming that under the new Income Tax rules which will kick in from June 17 they’ll be offenders and will be treated under the criminal offense. The sources are saying that it will be applicable to all cases for compounding received on or after this date. As per the reports of CBDT and its senior officers the offenders will be divided into two categories.
In the first group, Group A includes failure to pay the tax deducted at source under Chapter XVII-B, tax payable under Section 115-0, or failure to pay the tax collected at source. Also, in the second group, you’ll find offenses of willful attempt to evade tax, false statement in verification and failure to produce accounts and documents. The further process will begin after deciding in which category offender falls.
Also, if the individual or entity makes a Category A offense on more than three occasions then it will not be generally compounded and it will be declared as Group B offense. The revised guidelines also says that bearing on any offense under the Black Money and Imposition of Tax Act, 2015 will not be generally compounded.
CBDT said, “Notwithstanding anything contained in these guidelines, the Finance Minister may relax restrictions in Para 8.1 for compounding of an offence in a deserving case, on consideration of a report from the Board on the petition of an applicant.”