<h1>CBDT Updates Guidelines for Compounding Offences Under Income-Tax Act, 1961: Simplified Process, New Categories, and Conditions.</h1> The Central Board of Direct Taxes (CBDT) has issued revised guidelines for the compounding of offences under the Income-Tax Act, 1961, aimed at simplifying the process. These guidelines replace previous ones and categorize offences into technical (Category A) and non-technical (Category B). Compounding is not a right but may be granted by authorities based on eligibility and conduct. Offences under the Indian Penal Code cannot be compounded, but withdrawal may be considered if related to the same facts. Conditions for compounding include timely application, payment of outstanding dues, and withdrawal of related appeals. Certain serious offences are excluded from compounding.