The Central Board of Direct Taxes (CBDT) has introduced updated guidelines for compounding offences under the Income-tax Act, 1961, following the Finance Minister's budget proposal to streamline the process. These new guidelines replace all previously issued guidelines on the compounding of offences. This article presents an overview of the key updates in an FAQ format. The key changes include:
‣ Removal of Offence Categorization and Limits on the Number of Applications
‣ Provision for Fresh Applications after Defect Rectification
‣ Inclusion of Offences under Sections 275A and 276B for Compounding
‣ In cases involving Companies and HUFs, both the Main and Co-Accused can compound offences by paying the applicable charges
