CBDT Revises Form 161 to Allow Penalty Waiver Applications

The tax board has changed a form called Form 161.

Taxpayers can use it to ask for a penalty to be waived if they meet the rules.

They must pay the tax and interest they owe, as well as an additional amount set by the rules.

They must also agree not to appeal the assessment or reassessment order.

The application is due within one month after the month they receive that order.

A tax officer must decide within three months after the month the application arrives.

The officer must give the taxpayer a hearing before rejecting the request.

If the waiver is accepted, the assessment becomes final and cannot be appealed or revised.

The change took effect on the date the rules were published in the Official Gazette.