NITI Aayog bats for decriminalising minor tax offences

NITI Aayog has proposed a major overhaul of India's income tax enforcement framework, and recommended decriminalisation of 12 offences under the Income Tax Act, 2025, that are administrative or procedural in nature.

- PUSHPITA DEY New Delhi

Instead of criminal prosecution, the government think-tank has suggested imposing civil or monetary penalties for such defaults.

In its latest paper, Towards India's Tax Transformation: Decriminalisation and TrustBased Governance, released on Friday as part of the Tax Policy Working Paper Series, NITI Aayog outlined a strategy to promote trust-based tax governance. The Aayog called current legal framework as overly punitive, with 35 actions or omissions classified as criminal offences under the Act—many could result in imprisonment of up to 7 years.