The Economic Times

Relaxation in jail term on ITR filing offence in Budget 2026: Pay fine or 2 years jail instead of 7 years if ITR not filed and tax is above Rs 50 lakh

Budget 2026 significantly softens penalties for income tax defaults. The jail term for failing to file ITR with tax exceeding Rs 50 lakh is reduced from seven years to two years. Minor offenses will now only incur fines, and punishment will be graded based on the offense's severity, aiming for decriminalization and rationalization of tax laws.