Relaxation of time-Compounding of Offences under Direct Tax Laws-One-time measure-Extension of Timeline

Last updated: 08 January 2020

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The Central Board of Direct Taxes (CBDT) has extended the deadline for applying to compound offences under Direct Tax Laws. This one-time measure was introduced to help taxpayers who faced genuine difficulties in meeting the original deadline of 31st December 2019. The extension aims to provide relief to those who couldn't avail the initial relaxation window.

F.No.285/08/2014-IT(Inv. V)/639

Government of India

Ministry of Finance

Department of Revenue

(Central Board of Direct Taxes)

Room No. 513, 5th Floor, C-Block,

Dr. Shyama Prasad Mukherjee Civic Centre,

Minto Road, New Delhi -110002.

Dated: 03.01.2020

Subject: Relaxation of time-Compounding of Offences under Direct Tax Laws-One-time measure-Extension of Timeline-Reg.

Reference is inv ited to the Circular No. 2512019 F. No. 285/08/2014-TT(Tnv. V)/350 dated 09.09.2019, whereby, the condition for filing of applications for compounding of offences under the Income-tax Act, 1961 (the Act), to be filed within 12 months from filing of complaint in the court, was relaxed by CBDT till 31.12.2019, as a one-time measure.

2. The CBDT has received references from the field formation, including requests made by the ICAI chapters, wherein, it has been brought to the notice of CBDT that the taxpayers could not avail the benefit of the one-time relaxation window due to genuine hardships.

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FAQ :

The notification concerns the relaxation and extension of the timeline for compounding offences under Direct Tax Laws, as a one-time measure.

The original deadline for filing applications for compounding of offences under the Income-tax Act, 1961, was 31st December 2019.

The timeline has been extended because the CBDT received references indicating that taxpayers could not avail the initial one-time relaxation due to genuine hardships.

Taxpayers who faced genuine hardships and could not avail the initial one-time relaxation window for compounding offences can benefit from this extension.

No, this is described as a 'one-time measure' and an 'extension of timeline'.

Circular No : 1/2020
Source : https://www.incometaxindia.gov.in/communications/circular/circular_1_2020.pdf

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