CBDT Issues FAQs On Revised Guidelines For Compounding Of Offences Under Income-Tax Act

CBDT Issues FAQs On Revised Guidelines For Compounding Of Offences Under Income-Tax Act

These guidelines supersede all existing guidelines on the subject and are applicable to all pending as well as new applications from the date of their issuance.

Somendra SharmaUpdated: Monday, March 17, 2025, 08:31 PM IST
article-image
Representative Image | Pixabay

The revised Guidelines for Compounding of Offences under the Income-Tax Act, 1961 (hereinafter referred to as “the guidelines”) were issued on October 17, 2024. These guidelines supersede all existing guidelines on the subject and are applicable to all pending as well as new applications from the date of their issuance.

The guidelines have been simplified compared to the previous version, inter alia, by:

Eliminating the categorization of offences,

Removing the limit on the number of occasions for filing applications,

Allowing fresh applications upon curing of defects,

Permitting the compounding of offences under Sections 275A and 276B of the Act, and

Removing the existing time limit for filing applications, which was previously set at 36 months from the date of filing the complaint.

Following the issuance of the guidelines, queries were received from stakeholders seeking clarifications on various provisions. Based on these queries, the Central Board of Direct Taxes (CBDT) has issued Circular No. 04/2025, dated March 17, 2025, in the form of answers to Frequently Asked Questions (FAQs). These FAQs provide necessary clarifications on:

The scope of the guidelines,

Eligibility for filing applications,

The mode of filing compounding applications and payment of fees,

Terms for compounding,

Compounding charges and procedures for payment,

Time limits, and

Other related aspects.

The FAQs are available on the official website of the Income Tax Department at:
https://incometaxindia.gov.in/news/circular-no-04-2025.pdf.

RECENT STORIES

State-Run Oil Marketing Companies To Increase Fuel Discount For Maharashtra State Road Transport...

State-Run Oil Marketing Companies To Increase Fuel Discount For Maharashtra State Road Transport...

Sensex, Nifty Open In Red After US Imposes 25% Tariffs; IT, Pharma, Auto In Focus

Sensex, Nifty Open In Red After US Imposes 25% Tariffs; IT, Pharma, Auto In Focus

Adani Group's Sardar Vallabhbhai Patel International Airport Ranked Number One In Passenger...

Adani Group's Sardar Vallabhbhai Patel International Airport Ranked Number One In Passenger...

Non-AC Coaches In Trains Increase To 70%, To Produce More 17,000 Non-AC General & Sleeper Coaches...

Non-AC Coaches In Trains Increase To 70%, To Produce More 17,000 Non-AC General & Sleeper Coaches...

Number Of Total Unique Trading Accounts On National Stock Exchange Of India Surpass 23-Crore...

Number Of Total Unique Trading Accounts On National Stock Exchange Of India Surpass 23-Crore...