Compounding of offences u/s 276b

Tax queries 333 views 1 replies

Tsering Phunchok Gurung

Student CA Final

58 Points Joined December 2014

What would be the fees for compounding of offences u/s 276B? It is said 3% per month or part of a month of the amount of tax in default. Can I take the fees as 2 times the amount of Interest on late payment of TDS as calculated u/s 201(1A)?

Can someone please share me a flowchart explaining compounding of offences u/s 276B?

Thanks in advance!

Replies (1)

Rakhi Dhama

student

22 Points Joined March 2014

Yes u can consider it as 2 times of the interest paid. 3% is for 1st time compounding of offence, for second time it will be 5% and increasing for further default. in addition to 3% there are additional charges of 25000 p.a to be paid.