For Quick Alerts
ALLOW NOTIFICATIONS  
For Daily Alerts

Tax Default, Black Money Cases Can No More Be Settled Just By Paying Penalty

|

The new tightened guidelines issued by the Income Tax Department, effective from 17 June 2019, have made serious offences under the Black Money and Benami Law, generally non-compoundable. It means that from now on, a person or entity cannot settle such a tax evasion just by paying off the tax and penalty with interest.

An IANS report said that the Central Board of Direct Taxes (CBDT) has issued directions to its senior officials, listing 13 cases where offences are not to be generally compounded and also grouped the offences in two parts.

Tax Default, Black Money Cases Can No More Be Settled Just By Paying Penalty

 

Category 'A' includes failures to pay tax deducted at source (TDS) under Chapter XVII-B or tax payable under Section 115-0 and failure to pay the tax collected at source (TCS), among others.

Category 'B' include offences like willful attempt to evade tax, failure to produce accounts and documents, and producing false statement in verification.

Offences in the first category are open to compounding, however, when found guilty on more than three occasions, would not be generally compounded.

Willful evasion of tax, removal or concealment or transfer or delivery of property to thwart tax recovery in a search operation, offences under sections 275A, 275B and 276 of the Act, any offence under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 and offences under the Benami Transactions (Prohibition) Act, 1988, would not merit compounding by tax authorities.

Story first published: Monday, June 17, 2019, 12:30 [IST]
Company Search
Get Instant News Updates
Enable
x
Notification Settings X
Time Settings
Done
Clear Notification X
Do you want to clear all the notifications from your inbox?
Settings X
We use cookies to ensure that we give you the best experience on our website. This includes cookies from third party social media websites and ad networks. Such third party cookies may track your use on Goodreturns sites for better rendering. Our partners use cookies to ensure we show you advertising that is relevant to you. If you continue without changing your settings, we'll assume that you are happy to receive all cookies on Goodreturns website. However, you can change your cookie settings at any time. Learn more