New Delhi, Oct 17 (PTI) The income tax department on Thursday issued revised guidelines for compounding offences under the I-T law by simplifying the process and lowering the charges.
The revised guidelines will apply to pending as well as new applications for compounding of offences. It has done away with the categorisation of offences and removed the limit for filing applications, among others, the Central Board of Direct Taxes (CBDT) said in a statement.
To facilitate the compounding of offences by companies and HUFs, the requirement of the main accused filing the application has been dispensed with.
The offences of the main accused as well as any or all co-accused can be compounded on payment of relevant compounding charges by the main accused and/or any of the co-accused, under the revised guidelines.
The compounding charges have also been rationalised by abolishing interest chargeable on delayed payment of compounding charges, reducing rates for various offences, such as for TDS defaults multiple rates of 2, 3 and 5 per cent have been reduced to a single rate of 1.5 per cent per month and basis for calculation of compounding charges for non-filing of return has been simplified.
“The revised guidelines are an additional step towards simplification of procedures aimed at promoting ease of compliance,” the CBDT said.
The guidelines are expected to facilitate the stakeholders by reducing complexities arising out of existing multiple guidelines, simplifying the compounding procedure and lowering the compounding charges, it added. PTI JD BAL BAL
