The Economic Times News

Why Income-Tax Act 2025 still criminalises small mistakes and why India needs a more trust-based approach

India's tax system is set for a major overhaul with the Income-tax Act, 2025. The Finance Bill, 2026, should consider decriminalizing minor tax offenses. This move if made can help reduce taxpayer worry and streamline enforcement. Serious crimes like tax evasion will remain criminal. Reforms will balance revenue protection with taxpayer trust.