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Taxation Central Ministry of Finance Income Tax Act, 1961

Revised Guidelines for compounding of offences under the Income Tax Act, 1961

17-Sep-2022 | Press Release dated 17th September, 2022

CBDT has revised the Guidelines for Compounding of offences under the Income-tax Act, 1961 with reference to various offences covered under the prosecution provisions of the Act. Some of the major changes are- 1. The scope for compounding of offence has been relaxed where an applicant who has been convicted with imprisonment for less than 2 years previously non-compoundable has now been made compoundable. 2. The time limit for acceptance of compounding applications has been relaxed from the earlier limit of 24 months to 36 months now. 3. 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.

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