CBDT press release Circular No. 04/2025 · 17 Mar 2025
Official title
CBDT issues Circular on Frequently Asked Questions (FAQs) relating to Revised Guidelines for Compounding of Offences under Income-Tax Act, 1961 dated 17.10.2024
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Check the official recordThe Central Board of Direct Taxes issues Circular No. 04/2025 to clarify the revised guidelines for compounding of offences under the Income-Tax Act, 1961. These guidelines apply to all pending and new applications from October 17, 2024. The circular provides answers to frequently asked questions from stakeholders. It covers the scope of the guidelines and eligibility for filing applications. It also explains the mode of filing applications and payment of fees. The circular details the terms for compounding and the procedures for payment of compounding charges. Stakeholders can access the full text of the FAQs on the official website of the Income Tax Department.
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Government of India Ministry of Finance Department of Revenue Central Board of Direct Taxes ******
New Delhi, 17th March, 2025 PRESS RELEASE
CBDT issues Circular on Frequently Asked Questions (FAQs) relating to Revised Guidelines for Compounding of Offences under Income-Tax Act, 1961 dated 17.10.2024– reg.
The revised Guidelines for Compounding of Offences under the Income-Tax Act, 1961 (hereinafter referred to as “the guidelines”) were issued on October 17, 2024. These guidelines supersede all existing guidelines on the subject and are applicable to all pending as well as new applications from the date of their issuance. The guidelines have been simplified compared to the previous version, inter alia, by eliminating the categorization of offences, removing the limit on the number of occasions for filing applications, allowing fresh applications upon curing of defects, permitting the compounding of offences under sections 275A and 276B of the Act, and removing the existing time limit for filing applications, which was previously set at 36 months from the date of filing of the complaint. Following the issuance of the guidelines, queries were received from stakeholders seeking clarifications on various provisions. Based on these queries, the CBDT has issued Circular No. 04/2025, dated March 17, 2025, in the form of answers to frequently asked questions (FAQs). These FAQs provide the necessary clarifications on the scope of the guidelines, eligibility for filing applications, the mode of filing compounding applications and payment of fees, terms for compounding, compounding charges and procedures for payment, time limits, and other related aspects. The FAQs are available on the official website of the Income Tax Department at https://incometaxindia.gov.in/news/circular-no-04-2025.pdf
(V. Rajitha) Commissioner of Income Tax (Media & Technical Policy) & Official Spokesperson, CBDT
