The Income Tax Department on Thursday issued revised guidelines for compounding of offences under the Income Tax Act by simplifying the process and reducing charges.
The revised guidelines will apply to pending and new applications for compounding of offences. Compounding of offences means that in some offences the concerned parties can settle the case while the case is pending in the court.
Upon compounding, further proceedings in the case are stopped. The Central Board of Direct Taxes (CBDT) said in a statement that it has abolished the classification of crimes and also removed the limit for filing applications. To facilitate the compounding of crimes by companies and Hindu Undivided Families (HUFs), the condition of filing an application on behalf of the main accused has been abolished.
Under the new guidelines, the offences of any or all co-accused along with the main accused can be compounded on payment of the relevant compounding fee by the main accused and/or any co-accused. It also rationalises compounding fees by eliminating interest on delay in payment of compounding fees.
Apart from this, the rates for various offences have been reduced. For example, multiple rates related to default in tax deduction at source (TDS) have been removed and a single rate of 1.5 percent per month has been made. Along with this, the basis for calculating compounding fee for not filing returns has also been simplified.
CBDT said, “The revised guidelines are a further step towards simplification of processes with the objective of promoting ease of compliance.” These guidelines are expected to facilitate stakeholders by reducing complexities, simplifying the compounding process and reducing compounding charges.
Related Articles:-
Top 5 Best Lifetime FREE credit cards India – Features benefits and other
Air India will start daily non-stop flights on this route from October 27
UPI Service: India to introduce UPI payment service in Maldives
