<h1>CBDT Simplifies Income Tax Offence Compounding: New Guidelines Reduce Charges, Ease Application Process, and Expand Eligibility.</h1> The Central Board of Direct Taxes (CBDT) has issued revised guidelines for compounding offences under the Income-tax Act, 1961, effective from October 17, 2024. These guidelines simplify the compounding procedure, reduce charges, and eliminate complexities from previous guidelines. Key changes include removing the categorization of offences, allowing fresh applications after curing defects, permitting compounding under sections 275A and 276B, and abolishing the 36-month application filing limit. The requirement for the main accused to file applications is removed, allowing companies and HUFs to compound offences. Compounding charges are rationalized, reducing rates for TDS defaults and simplifying calculations for non-filing of returns.