The Central Board of Direct Taxes (CBDT) has issued Guidelines for Compounding of Offences under Direct Tax Laws, 2019 in supersession of earlier Guidelines, including the Guidelines vide F.No.285/3512013 IT(Inv.V)1108 dated 23rd December 2014.
These Guidelines shall come into effect from 17.06.2019 and shall be applicable to all applications for compounding received on or after the aforesaid date. The followings are key guidelines issued:
a) The offences are classified into two parts (Category 'A' and Category 'B') for the limited purpose of Compounding of Offences. Category A includes offences related to failure to deduct or pay tax/TDS, failure to furnish ITR, etc., whereas category B includes offences like, willful attempt to evade tax, Failure to produce accounts and documents, etc.
b) Category 'A' offence cannot be compounded on more than three occasions.
c) The compounding application may be filed suo-moto at any time after the offence(s) is committed irrespective of whether it comes to the notice of the Department or not (subject to conditions).
d) Any offence which has bearing on any offence under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 cannot be compounded.
e) Any offence which has bearing on any offence under the Benami Transactions (Prohibition) Act,1988 cannot be compounded.
Notification F.No.28S/08/2014-IT(Inv.V)/147, dated 14-06-2019
These Guidelines shall come into effect from 17.06.2019 and shall be applicable to all applications for compounding received on or after the aforesaid date. The followings are key guidelines issued:
a) The offences are classified into two parts (Category 'A' and Category 'B') for the limited purpose of Compounding of Offences. Category A includes offences related to failure to deduct or pay tax/TDS, failure to furnish ITR, etc., whereas category B includes offences like, willful attempt to evade tax, Failure to produce accounts and documents, etc.
b) Category 'A' offence cannot be compounded on more than three occasions.
c) The compounding application may be filed suo-moto at any time after the offence(s) is committed irrespective of whether it comes to the notice of the Department or not (subject to conditions).
d) Any offence which has bearing on any offence under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 cannot be compounded.
e) Any offence which has bearing on any offence under the Benami Transactions (Prohibition) Act,1988 cannot be compounded.
Notification F.No.28S/08/2014-IT(Inv.V)/147, dated 14-06-2019
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