The CBDT has issued a letter dated 23.12.2014 setting out the guidelines
for compounding of offences under Direct Tax Laws. The guidelines shall
come into effect from 01.01.2015 and shall be
applicable to all
applications for compounding received on or after the aforesaid date.
The Guidelines classify offences into two parts and set out the criteria
for compounding of offences under each category. The procedure to be
adopted for making the compounding application and the manner in which
they should be dealt with is also explained in detail.