New Delhi: The Central Board of Direct Taxes (CBDT) has revised Form 161, introducing fresh disclosure and payment requirements for taxpayers seeking a waiver of penalty under the Income-tax Act, 2025.
The changes were notified on October 8 through the Income-tax (Sixth Amendment) Rules, 2026. The revised form applies to applications filed under Section 440(2) of the Act.
What Has Changed?
The amendment modifies Rule 231 of the Income-tax Rules, 2026, by inserting the words "or waiver" after "imposition".
It also replaces the earlier Form 161 with a revised format requiring detailed information about assessment orders, under-reported income, outstanding tax and interest.
The revised form has two sections. Part A seeks basic taxpayer information, including name, Permanent Account Number (PAN), address, mobile number and email address.
Part B covers assessment-related details, including the relevant tax year, applicable section, Document Identification Number (DIN), order date and payment deadline.
How Much Additional Tax Is Payable?
The revised form specifies two rates of additional income tax payable in place of penalty.
Taxpayers whose under-reported income involves misreporting under Section 439(11)(a) to (f) must pay an additional 100 per cent of the relevant tax amount.
For cases covered under Section 439(11)(g), the additional tax payable is 120 per cent.
The total payment includes tax and interest on assessed income, along with the additional tax required for the waiver.
Taxpayers must complete these payments within the deadline specified in the notice of demand.
What Details Must Taxpayers Submit?
Applicants must provide payment information, including the bank's BSR code, deposit date, challan serial number and amount paid.
Multiple payment entries are permitted where necessary.
The verification section requires applicants to confirm that the information submitted is accurate and that no appeal has been filed against the assessment order.
They must also undertake not to file an appeal before the period specified under Section 440(5) expires.
Digital Filing Gets Easier
The revised form permits the use of a Digital Postal Index Number (DIGIPIN) in address details.
The notification also provides for pre-filled information wherever possible, potentially reducing manual entries and simplifying the application process.
