Budget 2026: Sitharaman Decriminalises Non-Production of Account Books, Eases Tax Compliance
India
M
Moneycontrol•01-02-2026, 17:42
Budget 2026: Sitharaman Decriminalises Non-Production of Account Books, Eases Tax Compliance
- •Finance Minister Nirmala Sitharaman announced the decriminalisation of non-production of books of accounts and related documentation during her Budget 2026 speech.
- •Minor offences will now attract only a fine, and remaining prosecutions will have graded penalties with a maximum of two years simple imprisonment.
- •Proposed changes include extending the revision period for tax returns from December 31st to March 31st with a nominal fee.
- •Tax filing deadlines will be staggered: July 31st for ITR 1 and ITR 2 individuals, and August 31st for non-audit business cases or trusts.
- •Immunity from prosecution for non-disclosure of non-immovable foreign assets under Rs 20 lakh, and a six-month disclosure scheme for overseas assets/income for students and others.
Why It Matters: Budget 2026 aims to simplify tax administration, reduce litigation, and encourage compliance through decriminalisation and flexible policies.
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