Compounding of tax offences: fee computed on finally revised tax and compounding rates reduced and standardized. The compounding fee must be computed on the tax as finally determined after appeal, revision or rectification. A rate of 2% per month or part thereof of that revised tax is prescribed for calculation purposes. For wilful attempts to evade tax under Section 276C(1), the compounding fee is fixed at 50% of the amount sought to be evaded irrespective of quantum. These changes apply to future and pending cases, exclude already compounded offences, and extend mutatis mutandis to other Direct Tax Laws.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Compounding of tax offences: fee computed on finally revised tax and compounding rates reduced and standardized.
The compounding fee must be computed on the tax as finally determined after appeal, revision or rectification. A rate of 2% per month or part thereof of that revised tax is prescribed for calculation purposes. For wilful attempts to evade tax under Section 276C(1), the compounding fee is fixed at 50% of the amount sought to be evaded irrespective of quantum. These changes apply to future and pending cases, exclude already compounded offences, and extend mutatis mutandis to other Direct Tax Laws.
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