Sanction requirement for tax prosecution: prior approval from designated authorities needed before initiating proceedings. Prior sanction is required to institute prosecution for a specified list of tax offences, to be granted by senior tax authorities or an 'appropriate authority,' and the Principal Chief Commissioner/Chief Commissioner/Principal Director General/Director General may issue directions to subordinate authorities on instituting such proceedings. Penalty reduction or waiver under the statutory compromise bar prevents prosecution for certain offences for the same assessment year. Competent authorities may compound offences before or after proceedings, and the Central Government may notify a scheme to streamline sanction and compounding procedures, including technological interfaces, team based sanctions and specified statutory adaptations.