Form 161: CBDT revises penalty-waiver application

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The Central Board of Direct Taxes (CBDT) has replaced Form 161 for penalty-waiver applications under section 440(2) of the Income-tax Act, 2025. Notification No. 134/2026, dated 8 October 2026, prescribes a revised form recording assessment details, tax payments and a declaration concerning appeals against the assessment order.

The notification, published as G.S.R. 871(E), introduces the Income-tax (Sixth Amendment) Rules, 2026. It took effect on publication in the Official Gazette on 8 October 2026. Alongside replacing the form, CBDT amended rule 231 by inserting the words “or waiver” after “imposition”.

The revised form sets out additional income-tax payable in place of penalty for specified categories of misreported income. Its calculation includes that additional tax alongside tax and interest payable on assessed income. The application therefore concerns relief from penalty, rather than removal of the underlying tax demand.

How Form 161 records the payment

Part B of the notified form separates assessed income from under-reported income. Within under-reported income, it distinguishes amounts arising from misreporting under section 439(11)(a) to (f), amounts under section 439(11)(g), and amounts not arising from misreporting. These are separate entries, rather than a single combined disclosure.

For the two misreporting categories, the form requires the tax payable on the relevant under-reported income, referring to section 439(12) for that calculation. It then specifies additional income-tax payable in lieu of penalty as follows:

For income entered under section 439(11)(a) to (f), the additional amount is 100 per cent of the tax payable on that income.
For income entered under section 439(11)(g), the additional amount is 120 per cent of the tax payable on that income.

The percentages apply to the corresponding tax amounts, not directly to the amount of under-reported income. Form 161 adds the two additional-tax entries together and then combines their total with the tax and interest payable on assessed income. That produces the form’s stated total amount payable for waiver of penalty, with a reference to section 440(1).

For the assessed-income tax and interest entry, the form directs applicants to the computation sheet accompanying the notice of demand. This is the document setting out the amount demanded for payment. The notified calculation thus keeps the original tax-and-interest component separate from the additional tax payable in place of penalty.

The payment timing is tied to that demand notice. Note 3 to Form 161 specifies payment of the total amount for waiver within the due date shown in the notice, which must also be entered separately in the application. It is not expressed as a common calendar deadline for all applicants.

Assessment records and payment details

The revised form links each application to an assessment or reassessment order. Part B asks for the tax year, the statutory section under which the order was passed and its Document Identification Number, or DIN, which identifies the order.

It also requires three distinct dates: the date of the order, the date it was served and the payment due date under the demand notice. Recording these separately preserves the distinction between an order being issued, being delivered to the taxpayer and becoming due for payment.

The payment section asks for the BSR code, deposit date, challan serial number and amount paid. The form allows the payment block to be repeated where required, so more than one payment can be recorded against the application.

Part A covers the applicant’s identity and contact information: full name, Permanent Account Number, address, mobile number with country code, and email address. The accompanying notes require names in full, without abbreviations, including first, middle and last names for individuals.

The address fields cover country or region, building and street particulars, postal code, post office, locality, district and state. The notes also permit inclusion of a DIGIPIN. These are requirements for information in the application, not directions to publish applicants’ personal details.

CBDT’s form states that some information will be pre-filled to the extent possible. It also specifies that amounts must be entered in rupees unless otherwise stated.

The declaration concerning appeals

The verification at the end of Form 161 requires more than confirmation of the financial entries. The applicant must declare that the information is true to the best of their information and belief, and that no appeal has been filed against the order identified in Part B.

The applicant must also state the capacity in which the application is made and confirm competence to file and verify it. The signature block includes the signatory’s name, place, date and designation where applicable.

A further undertaking concerns the period after filing: the applicant must undertake not to appeal against the same order before the expiry of the period specified in section 440(5). The notified wording links that undertaking to a statutory period; it does not describe it as a permanent promise never to appeal.

References

Ministry of Finance, Department of Revenue, Central Board of Direct Taxes. “INCOME-TAX”, Notification No. 134/2026, G.S.R. 871(E), 8 October 2026. Gazette of India, Extraordinary. egazette.gov.in
NOTIFICATION INCOME-TAX. incometaxindia.gov.in. https://incometaxindia.gov.in/documents/d/guest/notification-no-134-2026-pdf. Retrieved 20 October 2026.