Revised Form No. 161 for Penalty Waiver Applications

Income-tax (Sixth Amendment) Rules, 2026: Revised Form No. 161 for Penalty Waiver Applications

The Central Board of Direct Taxes (CBDT), Ministry of Finance, has notified the Income-tax (Sixth Amendment) Rules, 2026, through Notification No. 134/2026 dated 8 October 2026.

The amendment revises Rule 231 and replaces Form No. 161 under the Income-tax Rules, 2026. The revised form is intended for taxpayers seeking waiver of penalty under Section 440(2) of the Income-tax Act, 2025.

The amendment takes effect from the date of its publication in the Official Gazette.

1. Key changes introduced

Amendment to Rule 231: The words “or waiver” have been added after the word “imposition”, expressly incorporating the waiver-related provision.

Replacement of Form No. 161: The existing form has been substituted with a revised application format covering personal particulars, assessment or reassessment details, under-reported income, additional income-tax payable and payment particulars.

Payment-related disclosures: The revised form requires details of the tax and interest on assessed income, tax attributable to under-reported income, and additional income-tax payable in place of penalty.

Declaration and verification: Applicants must confirm the accuracy of the information furnished and provide the prescribed declarations regarding appeals.

2. Revised Form No. 161

Application for Waiver of Penalty under Section 440(2) of the Income-tax Act, 2025

Part A – Personal Information

Sr. No.	Particulars	Details
1	Full name of applicant (Note 1)
2	Permanent Account Number (PAN)
3	Complete postal address (Note 2)
4(i)	Mobile number	Country code: ______ Number: ______
4(ii)	Email ID

Part B – Assessment / Reassessment Order and Payment Details

Sr. No.	Particulars	Details
5	Tax Year
6	Section under which the order was passed
7	Document Identification Number (DIN) of the order
8	Date of order	DD/MM/YYYY
9	Date on which the order was served	DD/MM/YYYY
10	Payment due date specified in the notice of demand	DD/MM/YYYY
11	Income assessed	₹
12	Under-reported income
12(A)(i)	Under-reported income arising from misreporting covered by Section 439(11)(a) to (f)	₹
12(A)(ii)	Under-reported income arising from misreporting covered by Section 439(11)(g)	₹
12(B)	Under-reported income not arising from misreporting	₹
13	Tax and interest payable on assessed income, as per the computation sheet accompanying the demand notice	₹
14(i)	Tax payable on the amount reported at Item 12(A)(i), as per Section 439(12)	₹
14(ii)	Tax payable on the amount reported at Item 12(A)(ii), as per Section 439(12)	₹
15(i)	Additional income-tax in lieu of penalty: 100% of Item 14(i)	₹
15(ii)	Additional income-tax in lieu of penalty: 120% of Item 14(ii)	₹
15(iii)	Total additional income-tax payable: Items 15(i) + 15(ii)	₹
16	Total amount payable for waiver of penalty: Item 13 + Item 15(iii), subject to Note 3	₹

Details of Amounts Paid

Sr. No.	Particulars	Details
17(A)(i)	BSR Code
17(A)(ii)	Date of deposit	DD/MM/YYYY
17(A)(iii)	Challan serial number
17(A)(iv)	Amount paid	₹
17(B)	Additional payment entries, wherever applicable	Repeat the above details

Verification

I, __________________________, holding PAN __________________, declare that the information provided in this application is true to the best of my knowledge and belief.

I further declare that no appeal has been filed against the order identified in Part B of this application. I undertake not to file an appeal against the said order before the expiry of the period specified under Section 440(5) of the Income-tax Act, 2025.

I also confirm that I am submitting and verifying this application in the capacity of __________________________ and am duly authorised and competent to do so.

Verified on the ______ day of ____________, 20.

Particulars	Details
Place
Date
Signature
Name of applicant
Designation, where applicable

Notes applicable to Form No. 161

Name: Individuals must provide their complete first, middle and last names without abbreviations. Other applicants must also state their full names.
Address: The address should include the country/region, flat or building details, road or street, block or sector, PIN/ZIP code, post office, locality, district and state. DIGIPIN may also be provided.
Payment deadline: The total amount specified for penalty waiver must be paid within the due date mentioned in the notice of demand at Item 10.
Pre-filled information: Certain particulars may be populated automatically in the form wherever possible.
Currency: All amounts must be stated in Indian rupees (₹), unless otherwise specified.

3. Practical implications for taxpayers

Taxpayers intending to apply for waiver of penalty should review the revised Form No. 161 and reconcile the assessed income, under-reported income, applicable tax and interest, and additional income-tax payable.

Particular care should be taken while classifying under-reported income under the relevant clauses of Section 439(11), as the prescribed additional income-tax rates differ between the categories covered by Items 14 and 15.

Applicants should also verify the demand notice’s payment deadline and retain the relevant challan particulars as evidence of payment.

The declarations concerning appeals should be reviewed carefully before submission. Eligibility for waiver and the consequences of the application must be assessed in accordance with the applicable provisions of the Income-tax Act, 2025.

4. Effective date and reference

The Income-tax (Sixth Amendment) Rules, 2026, were notified on 8 October 2026 and become effective from the date of publication in the Official Gazette.

Notification

Also Read: SFT – 2517: Depository Transaction Reporting, Due Dates & Key Guidelines

Also Read: “CBDT Notifies New Forms PAN CR-01 & PAN CR-02 for PAN Correction from 1 April 2026”

Also Read: FAQs and Guidance notes on Forms under Income-tax Rules, 2026

Watch with CA Cult

Read More: Union Budget 2026 – CA Cult