CBDT revises the Guidelines for compounding of offences under the Income-tax Act, 1961

Sep 19, 2022 | by TeamLease RegTech Legal Research Team

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Finance & Taxation ComplianceThe Central Board of Direct Taxes (CBDT) on September 17, 2022 has issued Revised Guidelines for compounding of offences under the Income-tax Act, 1961.

The following has been stated namely: -

• Offence Punishable under Section 276 of the Income Tax Act, 1961 has been made compoundable.

• The scope of eligibility for compounding of cases has been relaxed whereby case of an applicant who has been convicted with imprisonment for less than 2 years has now been made compoundable. The discretion available with the competent authority has also been suitably restricted.

• The time limit for acceptance of compounding applications has been relaxed to 36 months, from the date of filing of complaint.

• Additional compounding charges in the nature of penal interest @ 2% per month up to 3 months and 3% per month beyond 3 months have been reduced to 1% and 2% respectively.

The revised Guidelines for Compounding of offences are available at http://www.incometaxindia.gov.in.



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