Budget 2020: Finance Minister Nirmala Sitharaman said the Companies Act will be amended to remove criminal liability.
New Delhi: The government proposes to amend the Companies Act to decriminalise civil offences, Finance Minister Nirmala Sitharaman said today as she announced Budget 2020. The Companies Act will be amended to remove criminal liability, she said.
She also asserted that “tax harassment” would not be tolerated.
“We are willing to put in law that tax harassment cannot be tolerated when we are talking about citizens,” added the Finance Minister.
She said a taxpayer’s charter would be institutionalized to ensure citizens were free from tax harassment.
One of the first to welcome the move to amend the Companies Act was Biocon’s Kiran Mazumdar Shaw. “Finance Minister promises end to tax harassment to India inc. correcting Companies Act to decriminalise many non-compliances. A much-needed message to infuse trust,” Ms Shaw tweeted.
Reports suggest that offences that could be decriminalized would include corporate social responsibility (CSR) violations and non-filing of returns.
Prime Minister Narendra Modi had earlier said that the government was working to decriminalise parts of the Companies Act to make it easier to do business in the country.
Many provision of the law had already been decriminalised and work was on to bring in more changes, PM Modi had said.
Article Credit: ndtv