Compounding fees under income tax act for offence

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 May 2013 What is the compounding fees at present under income tax act for offence committed under section 276B of the act(Depositing TDS amount after 12 months) ?

CA.Sourabh Sethia

CA.Sourabh Sethia (Expert)
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03 May 2013 Under the existing guidelines, compounding fee is 10% per month or part of a month, of the amount in default where the said amount exceeds Rs. one lakh and
5% per month or part of a month of the amount in default in other cases.

but it has now been reduced to 2% per month or part of a month of amount in default irrespective of amount in default.