New Delhi, Feb. 4 -- As an individual taxpayer, if you were looking forward to Budget 2026 with the expectation of changes in income tax slabs, rates, exemptions, deductions, etc., you will be disappointed. There were hardly any noteworthy changes announced in these. However, the Budget has proposed a slew of changes, including immunity from penalty or prosecution for under-reporting or misreporting of income, fees for late revision of ITR, and partial decriminalisation of certain prosecution provisions. Let us understand these proposals.

At times, some individuals may under-report income, unintentionally or intentionally. Currently, Section 440 grants a waiver of penalty and immunity from prosecution in the case of under-reporting of in...