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Compounding of offences u/s 276b

Tsering Phunchok Gurung (Student CA Final ) (58 Points)

06 June 2017

What would be the fees for compounding of offences u/s 276B? It is said 3% per month or part of a month of the amount of tax in default. Can I take the fees as 2 times the amount of Interest on late payment of TDS as calculated u/s 201(1A)?

Can someone please share me a flowchart explaining compounding of offences u/s 276B?

Thanks in advance!

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Rakhi Dhama (student) (22 Points)
Replied 23 January 2018

Yes u can consider it as 2 times of the interest paid. 3% is for 1st time compounding of offence, for second time it will be 5% and increasing for further default. in addition to 3% there are additional charges of 25000 p.a to be paid.