The Central Board of Direct Taxes (CBDT) has revised Form 161, used to apply for a waiver of penalty under the Income-tax Act, 2025, through the Income-tax (Sixth Amendment) Rules, 2026, notified on October 8.
The amendment inserts the words “or waiver” after “imposition” in Rule 231 of the Income-tax Rules, 2026, and replaces the existing Form 161 with a revised application format under Section 440(2) of the Income-tax Act, 2025.
The revised form requires taxpayers to provide details of their assessment or reassessment order, under-reported income, tax and interest dues, and additional income tax payable in lieu of penalty.
What has changed in Form 161?
The revised form is divided into two parts. Part A captures personal information, including the taxpayer’s name, Permanent Account Number (PAN), address, mobile number and email address.
Part B requires details such as the tax year, the section under which the order was passed, the Document Identification Number (DIN), the dates of the order and its service, and the payment deadline specified in the notice of demand.
Taxpayers must also disclose under-reported income, distinguishing between cases involving misreporting and those that do not. The form separately captures the tax and interest payable on assessed income and the tax payable on under-reported income.
How much additional tax must be paid for a penalty waiver?
The revised form specifies additional income tax payable in lieu of penalty at two rates:
- 100% of the relevant tax amount for under-reported income arising from misreporting covered under Section 439(11)(a) to (f).
- 120% of the relevant tax amount for cases covered under Section 439(11)(g).
The total amount payable for the waiver is calculated by adding the tax and interest payable on the assessed income to the additional income tax payable in lieu of penalty. The form specifies that this amount must be paid by the due date mentioned in the notice of demand.
What payment details must taxpayers provide?
Applicants must report the bank branch code (BSR code), date of deposit, challan serial number and amount paid. The form allows additional entries for multiple payments.
The verification section requires taxpayers to confirm the accuracy of the information provided and declare that no appeal has been filed against the relevant order. They must also undertake not to file an appeal before the expiry of the period specified under Section 440(5).
The revised format allows the address to include a Digital Postal Index Number (DIGIPIN). The notification also states that information will be pre-filled to the extent possible.
FAQs
FAQs
What is Form 161 used for?
Form 161 is the prescribed application for seeking a waiver of penalty under Section 440(2) of the Income-tax Act, 2025.
Does filing Form 161 automatically waive the penalty?
The notification revises the application format but does not state that filing it automatically results in a waiver. The applicable statutory provisions and prescribed procedure govern the application.
When do the revised rules take effect?
The Income-tax (Sixth Amendment) Rules, 2026, come into force on the date of their publication in the Official Gazette, as specified in the notification dated October 8, 2026.