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of <h1>Offences under Direct Tax laws with imprisonment of 2+ years cannot be compounded; previous similar convictions also disqualify.</h1> Compounding of offences is not permitted for individuals convicted under Direct Tax laws if the conviction involved imprisonment of two years or more, with or without a fine. Additionally, offences are not eligible for compounding if the individual was previously convicted under any other law with a similar punishment, provided the prior conviction is directly related to the offence for which compounding is sought.
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