Simplified Tax Guidelines Aim to Ease Compliance
The income tax department has released simplified guidelines for compounding offences, minimizing complications for pending and new applications. Changes include removing offence categorisation and reducing charges. This aims to facilitate companies and HUFs in expediting the compounding process and easing compliance procedures.
- Country:
- India
The income tax department on Thursday unveiled new streamlined guidelines for compounding offences under the Income Tax law, aiming to simplify the process and reduce charges. The Central Board of Direct Taxes (CBDT) confirmed that the guidelines apply to both pending and new applications.
The changes eliminate the categorisation of offences and remove the limit for filing applications. Additionally, the requirement for the main accused to file applications has been abolished. Both the primary and co-accused can now have their offences compounded upon payment of revised charges.
The rationalization includes slashing interest charged on delayed payments and reducing rates for offences like TDS defaults. Compounding rates have been unified, for example, reduced to 1.5% per month. The adjustments aim to reduce complexities and promote ease of compliance for stakeholders.
(With inputs from agencies.)
- READ MORE ON:
- tax
- compounding
- offences
- simplification
- compliance
- CBDT
- income
- charges
- payment
- streamlining
ALSO READ
SEBI Revamps InvITs to Boost Liquidity and Ease Business Compliance
EU Legal Action Against Member States Over Tax Rule Compliance
Transforming Indian Agricultural Markets: A Pathway to Better Farmer Incomes
Elon Musk's X Corp Faces Legal Setback in Australia Over Noncompliance Fine
India's Economic Leap: Doubling Per Capita Income