Compounding of offence is a process whereby the person/entity committing default will file an application to the compounding authority accepting that it has committed an offence and so that same should be condoned. The compounding authority may compound the offence and ask the defaulting party to deposit compounding fee as decided by it on case to case basis. Once the said compounding fee is paid, the defaulting will no more be treated in default of the offence which has been so compounded.
Advantages of Compounding of offences:
- No personal appearance for an officer in default, as in case of prosecution for an offence in a criminal court.
- Less time consuming as compared to actual proceedings.
We at Malhotra Rajiv & Co. provide you with expert professional assistance with regard to Compounding of Offences committed under the provisions of Income Tax Act, 1961.