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CBDT issues new norms for compounding of offences under black money law

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The Central Board of Direct Taxes issued new norms for compounding of offences on Friday. These will replace the old guidelines.

The new guidelines have exclusion provisions, under which, offences done under the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Act, 2015, the Benami Transactions (Prohibition) Act, 1988 cannot be compounded in normal cases. This includes money laundering cases. Compounding means that the authorities agree to not prosecute offenders in return for a consideration.

Amit Maheshwari, the managing partner at Ashok Maheshwary & Associates, said, “This clearly shows the government’s intent to not allow any breather to such erring tax payers.” The new norms will be effective from Monday.

Source: Business Standard