Form 161 is the application for waiver of penalty and immunity from prosecution under section 440(2) of the Income-tax Act, 2025. It must be filed online within one month from the end of the month in which the assessment or reassessment order is received. Before filing, you must have paid the full tax and interest demand, computed and paid the additional income-tax in lieu of penalty, and have no appeal pending. Filing also means giving up your right to appeal that order.
Key Takeaways
- Form 161 replaces Form 68 (earlier section 270AA(2), Rule 129) and sits under section 440(2) and Rule 231 of the Income-tax Rules, 2026.
- The filing deadline is not a flat 30 days. It runs to the end of the month following the month in which you received the order.
- A separate payment deadline applies: the date in the notice of demand, which is often about 30 days from service of the order.
- CBDT substituted the form through the Income-tax (Sixth Amendment) Rules, 2026 (Notification No. 134/2026 dated 8 October 2026), reported as effective from 9 October 2026.
- Form 161 is optional, event-based and can be filed only on the e-Filing portal.
What Is Form 161?
Form 161 is the prescribed application through which a taxpayer who accepts an assessment or reassessment order can ask for relief from penalty under section 439 and immunity from prosecution under sections 478 or 479 of the Income-tax Act, 2025. It was earlier Form 68 under the 1961 Act. The Income-tax Act, 2025 came into force on 1 April 2026, and the corresponding provisions now sit in section 440 and Rule 231.
| Aspect | Old position | Current position |
| Form | Form 68 | Form 161 |
| Section | 270AA(2), Income-tax Act, 1961 | 440(2), Income-tax Act, 2025 |
| Rule | Rule 129 | Rule 231, Income-tax Rules, 2026 |
| Relief sought | Immunity from penalty and prosecution | Waiver of penalty under section 439 and immunity from prosecution under sections 478/479 |
The Filing Deadline: One Month From the End of the Month
The Department's own FAQs state that Form 161 must be filed within one month from the end of the month in which the assessment or reassessment order is received. This is an outer limit, and an application filed after it is time-barred.
Is it a 30-day deadline?
Many readers search for a "30-day deadline", but two different clocks are involved, and neither is a flat 30 days from the order date.
| Clock | Starts from | What must happen? |
| Filing deadline | End of the month in which the order is received | Form 161 must be filed within one month from that point |
| Payment deadline | Date specified in the notice of demand (often about 30 days from service) | Tax, interest and the additional income-tax in lieu of penalty must be paid by that date. |
Because payment must be completed within the period in the notice of demand and the form requires proof of payment, in practice the payment date comes first and is the tighter constraint.
Worked Examples
| Order received | End of that month | Last date to file Form 161 |
| 5 March | 31 March | 30 April |
| 15 October | 31 October | 30 November |
Illustrative only. Confirm the date of service shown on your order and demand notice, and do not plan to file on the last day.
Who Can File Form 161: Key Conditions
Any assessee, whether an individual, company, LLP, firm or trust, may apply if all of the following hold:
- Order received: You have received an assessment or reassessment order under the Income-tax Act, 2025.
- Tax and interest paid in full: The full amount of tax and interest per the notice of demand has been paid within the period in the notice. Part payment does not qualify.
- Additional income-tax paid: The additional income-tax in lieu of penalty, as computed in the revised form, has been paid (see the next section).
- No appeal: No appeal has been filed against the order, and you undertake not to file one before the expiry of the period specified in section 440(5).
- No prosecution already started: Prosecution proceedings under Chapter XXII must not have been initiated. Commentary treats this as a bar under section 440.
- Valid PAN and online filing: The form cannot be submitted without a valid PAN, and only through the e-Filing portal.
Form 161 is optional. It makes sense only if you accept the assessment. If you believe the additions are wrong, an appeal preserves your right to contest, but it rules out the waiver.
Additional Income-Tax: What You Must Pay in Lieu of Penalty
The revised Form 161, as reported, asks you to split under-reported income and compute the additional income-tax separately.
| Category of under-reported income | Additional income-tax in lieu of penalty |
| Under-reported income covered by the first category in the form (Item 12(A)(i)) | 100% of the tax on that income |
| Under-reported income from misreporting under section 439(11)(g) (Item 12(A)(ii)) | 120% of the tax on that income |
| Under-reported income not arising from misreporting (Item 12(B)) | Check the form's computation for the applicable treatment |
What Changed in the Revised Form 161 (October 2026)?
- The Income-tax (Sixth Amendment) Rules, 2026 (Notification No. 134/2026, G.S.R. 871(E), dated 8 October 2026) amended Rule 231 and substituted Form 161.
- The words "or waiver" were added after "imposition" in Rule 231, so the rule now covers waiver of a penalty as well as immunity from its imposition.
- The form is structured in two parts: Part A (personal information) and Part B (order and payment details), followed by a verification declaration.
- It captures the tax year, section under which the order was passed, DIN, order and service dates, assessed and under-reported income, due date under the notice of demand, and challan-wise payment details.
- It includes a declaration that no appeal has been filed and an undertaking not to file one within the period in section 440(5).
Documents and Details Needed
- Assessment or reassessment order, with DIN, date of order and date of service.
- Notice of demand and the computation sheet, showing the due date.
- Proof of payment for tax, interest and additional income-tax: BSR code, challan serial number, date of deposit and amount.
- Your PAN and current contact details.
- Classification of under-reported income into the categories used in the form.
How to File Form 161 Online?
- Log in to the Income Tax e-Filing portal and go to e-File, then Income Tax Forms, then File Income Tax Forms.
- Select the tab for forms under the Income-tax Act, 2025 and choose Form 161.
- Complete Part A and Part B, entering challan details exactly as per payment records.
- Make the verification declaration and submit with the prescribed digital verification.
- Save the acknowledgement number and track status under e-File, Income Tax Forms, View Filed Forms.
What Happens After You File?
The application is examined by the Assessing Officer. The Department's FAQs note that the acceptance or rejection order is communicated through the portal and also sent to your registered email and mobile number. Commentary on section 440 states that the order must be passed within three months from the end of the month of receipt of the application, and that an application cannot be rejected without a hearing. If accepted, you receive waiver of penalty under section 439 and immunity from prosecution under sections 478/479, and the order attains finality.
Outcomes at a Glance
| Scenario | Likely outcome |
| Full payment, no appeal, filed on time | Eligible for waiver and immunity |
| Part payment of tax, interest or additional tax | Application liable to be rejected after hearing |
| Appeal already filed | Not eligible |
| Filed after the one-month window | Time-barred |
| Prosecution already initiated | Not eligible |
Common Mistakes to Avoid
- Treating the filing deadline as the payment deadline, and paying after the date in the notice of demand.
- Filing an appeal first and then trying to apply for the waiver.
- Misclassifying under-reported income between the 100% and 120% categories, leading to short payment.
- Challan mismatches: wrong PAN, BSR code, serial number or amount.
- Assuming Form 161 is available after prosecution has begun.
Pre-Filing Checklist
- Note the date of service and the due date in the notice of demand.
- Decide: accept the assessment and apply for the waiver, or appeal.
- Classify under-reported income and compute the additional income-tax.
- Pay tax, interest and additional tax in full before the demand due date.
- Confirm no appeal has been filed and no prosecution has begun.
- File the form online well before the one-month window closes.
Frequently Asked Questions
What is Form 161 under the Income-tax Act, 2025?
It is the application under section 440(2) for waiver of penalty under section 439 and immunity from prosecution under sections 478 or 479, after an assessment or reassessment order. It replaces Form 68.
What is the deadline for filing Form 161?
Within one month from the end of the month in which the order is received. It is not a flat 30 days from the order date.
Is Form 161 mandatory?
No. It is optional and is filed only by a taxpayer who wants waiver and immunity after paying the demand in full and giving up the right to appeal.
Can I file Form 161 if I have already filed an appeal?
No. You must not have filed an appeal, and you must undertake not to file one before the period in section 440(5) expires.
Can I file Form 161 after paying only part of the demand?
No. The full tax and interest per the notice of demand must be paid, and the revised form also requires the additional income-tax to be computed and paid.
How much additional income-tax is payable under the revised Form 161?
The form computes 100% of the tax on one category of under-reported income and 120% of the tax on misreporting covered by section 439(11)(g). Classify carefully and verify against the notified form.
Can Form 161 be filed offline?
No. It can be filed only online on the e-Filing portal, and an acknowledgement number is generated on submission.
How long does the Assessing Officer take to decide?
Commentary on section 440 states three months from the end of the month in which the application is received, with a hearing before any rejection.
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