The chances of taxpayers — firms of various types, HUFs and individuals — being prosecuted for compliance lapses that have only minor revenue implications have been minimised. In what could reduce harassment of taxpayers and subsequent litigation, the Central Board of Direct Taxes (CBDT) has eased the norms for initiating prosecution for various defaults including failure to transfer TDS and TCS (tax collected at source) to the government, under-reporting of income and non-filing of tax returns. The circular, issued on Monday, came into immediate effect. It would also apply to all pending cases where complaints are yet to be filed. The CBDT said that there won’t usually be prosecution if the TDS/TCS not deposited is up to Rs 25 lakh and the delay is of less than 60 days.