New Delhi, October 10 (IANS). India’s tax reforms are at a crucial stage and the focus is on simplification, modernization and enhancing trust in tax administration. This information was given by NITI Aayog CEO BVR Subramaniam on Friday.
“As India moves from enforcement-driven compliance to trust-based governance, the focus should be on proportionate, fair and transparent enforcement systems that protect fiscal integrity while empowering taxpayers,” he said.
NITI Aayog on Friday released the second working paper under NITI Tax Policy Working Paper Series-II, titled “Towards India’s Tax Transformation: Decriminalization and Trust-Based Governance”.
This working paper makes a comprehensive assessment of the criminal provisions under the Income Tax Act, 2025. Additionally, it proposes a principles-based framework to rationalize penalties, decriminalize minor and procedural non-compliances, and strengthen judicial discretion.
The Niti Aayog working-paper said that the 2025 Act has abolished many old crimes, but 35 acts and omissions have been criminalized in 13 provisions, most of which have mandatory imprisonment.
The working-paper recommends a systematic decriminalization roadmap, including removing imprisonment for minor procedural lapses, limiting criminal penalties to cases involving fraud or willful tax evasion, and increasing the role of civil and administrative punishment.
According to Subrahmanyam, such reforms will reduce litigation, increase investor confidence and further strengthen India’s commitment to a fair and predictable tax regime in line with global best practice.
The event was attended by representatives of CBDT, CBIC, ICAI, DPIIT and leading tax experts who have worked closely with the Tax Policy Advisory Group (CGTP) of NITI Aayog, led by Dr. PS Puniha, Distinguished Fellow, NITI Aayog, and Sanjit Singh, Program Director, NITI Aayog.
–IANS
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