Income Tax Bill 2025: Prior Sanction Required for Offences; Authorities Can Initiate and Compound Proceedings.

Prosecution for specified offences under the Income Tax Bill, 2025, requires prior sanction from designated tax authorities, including the Principal Commissioner or Commissioner. The Principal Chief Commissioner or equivalent authorities may direct the initiation of proceedings and can compound offences, either pre- or post-proceedings. Offences related to specific tax years are exempt from prosecution if penalties are reduced or waived. Statements or documents produced in belief of penalty reduction remain admissible in proceedings. The Board retains authority to issue directives to ensure proper offence composition.