All Income Tax-Related Offenses Can Now Be Resolved Through Settlement

 

All offenses related to income tax can now be settled through Compounding of Offenses, making it a viable option for resolution. Even in cases where agencies like the Enforcement Directorate (ED) and the Central Bureau of Investigation (CBI) are investigating tax-related offenses, the matter can still be resolved through settlement.
Additionally, if an individual has already served a sentence for an income tax offense in the last ten years, they can still apply for a settlement and pardon.

No Need for Court Appeals
•    There is no need to file an appeal in court; cases under ED and CBI investigation can also be settled.
•    Guidelines were issued on October 17 last year, making tax-related offenses eligible for settlement.
•    The Income Tax Department has clarified that under the Income Tax Act, there is no longer any offense that cannot be resolved through settlement.

Application Process and Conditions
To settle an offense, the accused must submit an application and pay a prescribed fee. The department will then process the application, allowing the offense to be resolved legally.
However, serious crimes such as those involving terrorism or anti-national activities cannot be settled through this mechanism. Cases related to such offenses will not be eligible for resolution under this rule.

Role of Compounding of Offenses
The Compounding of Offenses mechanism provides an opportunity for offenders to legally settle cases by making a monetary payment instead of facing prosecution.
Individuals whose cases are still pending in court can also apply for settlement, thereby avoiding lengthy legal battles. This new policy is expected to significantly reduce tax-related disputes.