TaxTMI 
TaxTMI 
Revised guidelines for compounding of offences.
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....al and non-technical offences for the limited purpose of compounding of the offences. 2.2 Offences punishable under the following sections showed be treated as technical offences:- Sections (i) 275 (prior to 1.4.75 - failure to make payment or deliver returns or statements or allow inspection) (ii) 276B (prior to 1.4.89 - failure to deduct or pay tax) (iii) 276B (w.e.f. 1.4.89 - failure to pay tax deducted at source) (iv) 276BB (failure to pay the tax collected at source) (v) 276DD (failure to comply with the provisions of section 269SS) (vi) 276E (failure to comply with the provisions of section 269-I) 2.3 Offences punishable under the following sections shall be treated as non-te....
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....uest for compounding of the offence. 4.2 The case should be considered for compounding only when the assessee has paid the amount of undisputed tax as well as interest and penalties relating to the default. 4.3 The assessee should state that he is willing to pay the compounding fee prescribed in para 9 below, and the prosecution establishment expenses prescribed in para 10 below. The order compounding an offence should be passed only when the compounding charges comprising of the composition fee and establishment expenses are paid by the assessee/defaulter. 4.4 Technical offences may be compounded by CCIT or DGIT (as the case may be) if the following conditions are satisfied cumulatively:- (i) it is the first offence by an....
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....pose of determining authority granting approval for compounding, the compounding charges at the time of passing order u/s 279(2) shall be considered. However if the computation of compounding charges is dependent upon the income or tax etc. determined in the assessment order or any other order which is subject matter of appeal, revision, reference etc., the compounding charges shall be calculated on the basis of the assessment order or such other order. It may be clarified that compounding charges payable--------------- 5. Compounding of substantive/non-technical offences:- ------------------------------------------------- Following conditions must be cumulatively satisfied before compounding a substantive offence. (i) the....
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....---------------- The composition fee for compounding of various offences in addition to any interest / penalty leviable) will be as follows:- 9.1 Section 276:- Failure to make payment or deliver return or (prior to 1.4.76) statement or allow inspection. The composition fee would be an amount of Rs. 2/- for every day during which the default continues. 9.2 Section 276B:- Failure to deduct or pay tax (prior to 1.4.89). 10% per month or part of a month of the amount in default where the said amount exceeds one lac and 5% per month or part of a month of the amount in default in other cases. Section 276B:- Failure to pay the tax deducted at source (w.e.f. 1.4.89) 5% per month or part of a month of the amount of tax in defaul....
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....ome was due to be furnished, to the date of furnishing of the return or where no return was furnished, the date of completion of the assessment. 9.7.2 Where before the date of furnishing of the return or when no return was furnished, the date of completion of assessment any tax is paid by the assessee u/s 143A or otherwise: (i) Compounding fee shall be calculated in the manner prescribed in para 9.7.1 above, upto the date on which the tax is so paid and (ii) thereafter the fee shall be calculated at the aforesaid rate on the amount of tax determined on regular assessment as reduced by the TDS, advance tax and tax paid u/s 140A or otherwise before filing the return of income or where no return was furnished, the date of ....