End of arbitrary arrest by income tax officers? New Income Tax Bill 2025 proposes to decriminalise Section 276CCC
Tax Bill 2025 has said a person who failed to file an Income Tax Return (ITR) after a search operation will not be prosecuted under clause 480 without prior approval of higher tax authorities. Earlier in the Income Tax Act, 1961, there was no requirement for such approval. Also, the new tax Bill explicitly mentions that clause 480 which corresponds to Section 276CCC of Income Tax Act, 1961, is a non-cognizable offence. Earlier it was not explicitly mentioned in the 1961 Act. For the uninitiated, cognizable offence means authorities can arrest without prior court approval. Non-cognizable offence means authorities need prior approval from a court before arresting the person.
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Read below to know how this provides an end to arbitrary arrests by tax officers and why this is a much-needed relief for taxpayers
When is section 276CCC or Clause 480 of the new tax bill 2025 applied?
To understand what is Section 276CCC, which is now covered in clause 480 of the proposed Income Tax Bill 2025, you need to first understand income tax search and seizure operation.
When the tax department has sufficient information about any income which escaped assessment, they can search your premises or home or others for potential evidence. After search and seizure operations, the tax department sends a notice under section 158BC asking the taxpayer to file an ITR. Now if
