Quick Summary
Key Changes Aim to Simplify the Process and Enhance Compliance The Central Board of Direct Taxes (CBDT) has issued Circular No. 04/2025 dated March 17, 2025, providing Frequently Asked Questions (FAQs) on the revised guidelines for the Compounding of Offences under the Income Tax Act, 1961. These revised guidelines, effective from October 17, 2024, aim to simplify the compounding process, making it more accessible and efficient for taxpayers. Major Highlights of the Revised Guidelines All
Daily Limit Reached
You have reached your daily limit of 2 Free News
Subscribe to CCI PRO for unlimited access
Why Upgrade to CCI PRO?
- No Ads
- WhatsApp Community
- Daily E-Newsletter
- Unlimited News Access
- Profile Visitors
- Link Social Profiles
- Featured Job Posts
- Pro Badge
- Expert GST Guidance
- Unlimited Forum Replies
- Download Content in PDF
1 Year PLAN
1999
(Excl. of GST ₹359)
BEST VALUE
2 Years PLAN
3499
(Excl. of GST ₹629)
View all CCI PRO benefits
Already a PRO member? Login here for an ad-free experience. 011-411-70713
FAQ :
The revised guidelines aim to simplify the compounding process, making it more accessible and efficient for taxpayers, and to enhance compliance.
Yes, unlike previous guidelines, the revised rules allow for the compounding of all offences under the Income Tax Act, 1961.
Yes, the previous time limit of 36 months for filing a compounding application has been removed, and taxpayers can now file multiple applications.
Offences under Section 275A and Section 276B, which relate to tax evasion and TDS defaults, are now eligible for compounding.
No, applications that were pending before October 17, 2024, will automatically be considered under the new guidelines without requiring a fresh submission.
The competent authority to process compounding applications includes the Principal Chief Commissioner (Pr. CCIT), Chief Commissioner (CCIT), Principal Director General (Pr. DGIT), or Director General (DGIT).
CAclubindia
