SEBI Reg. Investment Advisor

Download App

MoneyWorks4Me

CBDT issues revised income tax rules for compounding of offences under direct tax laws

18 Jun 2019 Evaluate

The Central Board of Direct Taxes (CBDT) has issued revised income tax rules, which make it difficult for tax evaders to escape by simply paying a penalty. It has issued a revised 32-page guideline for ‘compounding of offences under direct tax laws, 2019’ which will be executed under the I-T Act, 1961. It has tightened framework for compounding of offences almost shutting the window for money laundering, non-disclosure of foreign assets or possession of a benami asset.

The new directives make it clear that compounding of offences is not a matter of right and the department can extend such a relief only in certain cases keeping in view factors like conduct of the person, the nature and magnitude of the offence on the context of the facts and circumstances of each case. Compounding in I-T parlance means that the taxman does not file a prosecution case against the offender or tax evader in the court in lieu of payment of due taxes and surcharges and it is dealt under section 279(2).

CBDT said indulgence in serious criminal cases of money laundering, terror financing, corruption, possession of benami properties and undisclosed foreign assets will virtually shut a person’s chances of getting relief in an income tax evasion offence beginning Monday (June 17).

About MoneyWorks4Me

MoneyWorks4Me is a SEBI-registered Investment Adviser (IA) dedicated to helping investors build long-term wealth through transparent, research-driven, conflict-free guidance. Founded in 2008, we started our journey as a Research Analyst (RA), providing deep fundamental analysis, intrinsic value insights, and long-term investing frameworks for Indian equities. In 2017, we transitioned to a full-fledged SEBI-registered Investment Adviser, strengthening our commitment to acting as a fiduciary—always putting the investor’s interest first.

Our Vision

To become India’s most trusted, research-powered fiduciary advisory platform—where every investor, regardless of experience, can make calm, confident, and well-reasoned investment decisions.

What Makes MoneyWorks4Me Different

Our Approach: Ensuring compounding work its magic on client portfolio.

MoneyWorks4Me ensures this through: