CBDT Issues Revised Guidelines to Simplify Compounding of Offences under the Income-tax Act, 1961

By: Admin
October 17, 2024
Categories: CBDT Notification | Press Release
4 Min Read

The Central Board of Direct Taxes (CBDT), in line with the Finance Minister’s budget announcement on simplifying compounding procedures, issued Revised Guidelines for Compounding of Offences under the Income-tax Act, 1961 on October 17, 2024. These new guidelines aim to reduce complexities, simplify processes, and lower compounding charges.

The key highlights of the revised guidelines include:

Simplification of the compounding process by eliminating offence categorization and removing the limit on the number of application filings.

Compounding of offences under sections 275A and 276B of the Act is now allowed.

Extended flexibility for companies and HUFs by dispensing with the need for the main accused to file the application. Both the main accused and co-accused can compound offences with payment of compounding charges.

Rationalized compounding charges by eliminating interest charges on delayed payment and reducing rates for offences such as TDS defaults from multiple rates to a single rate of 1.5% per month.

Streamlined process for non-filing of returns and removal of separate fees for co-accused.

The guidelines, applicable to pending and new applications, are part of the government’s push toward simplifying compliance and promoting ease of business.

For more details, the revised guidelines are available on the Income Tax Department website: https://www.incometaxindia.gov.in.

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