The Finance Minister, while announcing the budget 2020 has proposed to amend the Companies Act, 2013 to substitute criminal liability by civil liability.
The Finance minister stated that “tax harassment” would not be tolerated and also reassured taxpayers that the government will take measures to free from harassment of any kind.
Finance Minister Nirmala Sitharaman said in the Budget 2020 that “My first attempt and also an earnest attempt which continues today is to decriminalize everything to do with Companies law or related laws. The very point Prime Minister, Narendra Modi”.
She also stated that the government does not want a law that could treat every business house with suspicion and the number of sections leading to criminal liability and penalties in Company Law.
There has been a debate about building into statutes, criminal liability for acts that are civil in nature. Hence, for Companies Act, certain amendments are proposed to be made that will correct this.
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