Tax offences, failure to pay TDS up to Rs 25L not to invite prosecution

New Delhi: Instances of wilful attempt to evade tax, failure to furnish return of income and not remitting TDS in the government exchequer up to the limit of Rs 25 lakh will not be ordinarily filed for criminal prosecution before a court by the taxman, a latest CBDT circular said.

The directive is being seen as a major move to cut down tax litigation and will save a number of assessees from legal proceedings.

A September 9 CBDT circular said prosecution is a criminal proceeding based upon evidence gathered and the offence of tax evasion has to be "proven beyond reasonable doubt".