Tax department tightens the noose on offenders
CBDT’s stiffer tax provision will ensure serious offenders can’t escape prosecution
The guidelines restrict the number of times a person can file a compounding application for the same offence
The possibility of prosecution and imprisonment will soon become more real for tax offenders, thanks to the new guidelines issued by the Central Board of Direct Taxes (CBDT). The new rules, effective 17 June, plug a loophole in a tax provision that allowed tax evaders to escape imprisonment by paying up a little extra.