The 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.
