Under
the new rules, the Central Board of Direct Taxes (CBDT) has issued the
guidelines for tax defaulters. It clearly states that any offences associated
with any misconduct of activity shall not be compoundable. As per this strict
rule, those evading taxes would no longer be able to compound their offences
just by paying a penalty to avoid any prosecution. Moreover, the new latest
rules incorporated by the income tax department will be applicable for all the
cases received on or after June 17. The government has announced this in lieu
of disallowing compounding of offences related to benami transactions and
undisclosed foreign income under direct tax laws.
Before
few days, the CBDT allowed compounding of tax evasion offences related to
undisclosed foreign bank accounts and overseas assets if the taxpayer paid penalty
& the taxes with interest.Though, the Anti-Black Money Act, 2015 didn’t
permit compounding in serious tax evasion cases under the law.
Offences in category A and B-
The
offences have been categorized into two groupings, in category A it includes
failure to pay tax deducted at source or taxable under section 115-0. However,
the category B include wilful to evade tax, failure to produce amounts &
documents and false statement during verification.The first category offences
in the new Income
Tax return rules are open to
compounding while the rest aren’t. However, if the individual or entity makes a
Category A offence on more than three occasions then it will not be compounded.
The
revised provisions dictate that any offence occurred under the black money and
imposition of the income tax act, 2015 will not be compounded. In addition, any
wrongdoing under the Benami Transactions Act, 1988 would not merit compounding.
CBDT
said, “Notwithstanding anything contained in these guidelines, the Finance
Minister may relax restrictions in Para 8.1 for compounding of an offence in a
deserving case, on consideration of a report from the Board on the petition of
an applicant.
For
more details about efiling of income tax return
online visit our website
: https://www.allindiaitr.com
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