pri Govt to declare tax offences criminal if the source of income is illegal Govt to declare tax offences criminal if the source of income is illegal

Amid reports that the government is planning to make tax evasion a criminal offence, a finance ministry official today said it could be done only if the source of income is illegal.  But “if it is a tax evasion alone, it is a civil offence,” the official said

He, however, asserted that “if there is an element of illegality about the source of income or if funds are used for illegal purpose…we can think of classifying these as criminal tax offences”.

The government has set up a committee, headed by Central Board of Direct Taxes (CBDT) Chairman Prakash Chandra, to examine ways to strengthen laws to curb generation of unaccounted money in India, its illegal transfer abroad and its recovery.

Harsher punishments, the official said, could substantially check tax evasion.

“We can tighten laws to permit harsher punishment to those who are involved in such criminal tax offences,” the official added.

In its first meeting held yesterday, it was decided that public comments should be sought to strengthen the laws to unearth the unaccounted wealth.

The Income Tax Department had recently set up the Directorate of Criminal Investigation (DCI) to deal with tax crimes related to illegal activities.

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  1. MRkGANDHI says:

    It is a logical and rational approach; but even other wise major attempts to evade taxes should be held to be “criminal”. Nation should protect itself against big tax evaders and liability to prove that there is no criminal angle should be that of personal charged with evading the tax. If tax evasion is say above ten crores the evader should be hanged. Parking funds in foreign banks should be treated as criminal office and punishment should be minimum of 10 years to 100 years; if the government fear to introduce death penalty, so that large size evaders should languish in jails.


    Thanks Sir, for notification regarding interest upto Rs.7000.00 p.a. in Post office savings exempted from I.Tax.(in case of jointed a/c). Sir, pl clarify whether this exemption will also apply to MIS.

    Thanks& Regards,

    Isher Kumar Arora

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July 2021