- The guidelines were issued to conform to the Government of India’s policy of facilitating the Ease of Doing Business and decriminalization of offences.
- Some of the important changes made for the benefit of taxpayers include making offences punishable under Section 276 (Removal, concealment, transfer, or delivery of property to thwart tax recovery) of the Act compoundable.
- The scope of eligibility for compounding cases has been relaxed in which imprisonment for less than 2 years has now been made compoundable.
- The time limit for acceptance of compounding applications has been amended from the earlier limit of 2 years to 3 years.
- Penal interest of 2% per month up to 3 months and 3% per month beyond 3 months has been reduced to 1% and 2% respectively.
- CBDT is a statutory body that was established as per the Central Board of Revenue Act, 1963. It is administered by the Department of Revenue under the Ministry of Finance.
Question:
Q.1 As per the CBDT, the time limit for acceptance of compounding applications is?a. 12 Months
b. 24 Months
c. 36 Months
d. 48 Months
