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CBDT amends Income Tax Form 161 on 8 October: What changes for taxpayers seeking penalty waiver? Expert explains
Mint 1 hr ago·9 Oct 2026, 3:16 pm
The Central Board of Direct Taxes (CBDT) has updated Income Tax Form 161, a document used to seek a waiver of penalty under Section 273A of the Income Tax Act. This amendment, notified on 8 October, modifies the rules governing how taxpayers can apply for leniency when they fail to comply with tax laws due to genuine reasons.
This change matters to investors because it simplifies the process for individuals and businesses to avoid financial penalties. By clarifying the application process, the tax authority aims to reduce litigation and ensure that taxpayers can rectify mistakes without facing excessive fines, provided they meet the stipulated conditions.
Investors should watch for the specific conditions outlined in the new form. It is crucial for taxpayers to verify that they meet these updated criteria before filing. Staying informed about these procedural changes helps ensure compliance and avoids unnecessary financial burdens.
Excerpt from Mint
The CBDT has revised Income Tax Form 161 through a notification dated 8 October. The amendment updates the rules governing applications for penalty waiver. What does the revised form mean for taxpayers, and what conditions should they meet? The Central Board of Direct Taxes ( CBDT ) has amended Income-tax Form 161…Read the original at Mint
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