CBDT allows compoundable income tax offences for taxpayers

The Central Board of Direct Taxes (CBDT) has announced that all income tax offences are now compoundable, provided the applicant is not linked to anti-national or terrorist activities. This change allows taxpayers to apply multiple times for compounding. Previously, there was a 36-month limit for filing compounding applications, which has now been removed. Taxpayers can submit applications even after prosecution has started. The CBDT has also released a detailed FAQ to assist taxpayers in understanding the new rules and the compounding process.