Circular No. 5/2020 — Clarification on prosecution thresholds (Rs. 25L)
Date: 2020-01-01 Status: ACTIVE Category: Search & Seizure / Assessment Binding on Department: Yes (Section 119 / Section 400 IT Act 2025)
Summary
Clarifies that the Rs. 25 lakh threshold for prosecution applies to tax evaded (not income concealed). Provides additional safeguards.
Key Directions
- Threshold of Rs. 25 lakhs applies to tax evaded, not total income concealed.
- Prosecution not to be initiated for technical/venial breaches.
- Prior collegium approval mandatory before filing complaint.
Applicability Under IT Act 2025
Saving Clause: Section 536 of IT Act 2025 saves circulars issued under the 1961 Act “so far as not inconsistent” with the new Act.
| Old Section (1961 Act) | New Section (2025 Act) | Consistent? |
|---|---|---|
| 279 | — | Needs Review |
Cross-References
Act Sections
Related Circulars
- None identified
Key Case Law (Circular Supremacy)
- To be populated — cases where this circular was cited/applied
Full Text
Full text to be added — see raw/circulars/ for PDF when available
Source
- Official: incometaxindia.gov.in/circulars