The Department of Financial Services, under the Ministry of Finance, is proposing to decriminalise certain minor economic offences under specific laws. The Finance Ministry also seeks feedback from various stakeholders including state governments, private sectors, NGOs and the members of the public.
The suggested modifications include certain economic offences under the Banking Regulation Act, Negotiable Instruments Act, Unregulated Deposit Scheme Act, RBI Act and other laws.
Several laws provide for imprisonment in case of specific acts or failure to fulfil the requirements of law. For example, the Negotiable Instruments Act holds a person guilty of an offence for cheque bounce and dishonour. The offender could be liable for imprisonment for a term extending up to two years. The Finance Ministry suggests decriminalisation of the offence.
The proposals seek to improve the judicial system in India and enable ease of doing business. The judicial system has disputes pending at different levels. The length of time involved in resolution to conflicts and the legal uncertainty negatively affects the ease of doing business.
Also Read: RBI Proposes Relaxation in MHP for Mortgage-based Securities
The Ministry also cited judicial reforms as part of the COVID-19 response strategies to revive business and economic growth. The below principles to be borne in mind while reclassifying criminal offences into compoundable offences:
The business community could positively receive the proposals. The Ministry has put a deadline of 23 June 2020 to provide suggestions or comments on the proposals.
For any clarifications/feedback on the topic, please contact the writer at sweta.dugar@cleartax.in
I am a Chartered Accountant by profession. I specialise in personal taxes and corporate income tax matters. I am an avid reader and track developments in financial markets, economy and other market developments.
The systematic investment plan (SIP) contribution in February 2024 has crossed a new milestone. The monthly contribution tipped at Rs…
The Income-Tax (I-T) Department has directed taxpayers to access the Annual Information Statement (AIS) via the e-filing official portal and…
Considering the vagaries of the stock market, investors often ponder over reevaluating their strategies. Whether to continue to remain invested…
Financial planning is beyond just investing wisely to save on taxes; it's also related to protecting oneself and one's loved…
A salaried individual earning up to Rs 5-15 lakh as net salary on an annual basis must first take stock…
Equity-linked savings schemes (ELSS), also referred to as tax-saving schemes, are equity funds that invest a significant portion of their…