The Central Board of Direct Taxes (CBDT) has replaced Form 161 under the Income-tax Rules, 2026, and expressly added “waiver” to Rule 231’s reference to an application for imposition or waiver of penalty. The revised form is titled as an application to seek waiver of penalty under section 440(2) of the Income-tax Act, 2025. It asks for assessment-order, under-reported-income and payment details, and includes a declaration about appeals. The Department’s FAQ says applying is optional and describes eligibility and a filing window; taxpayers should check the live portal and applicable law before acting.
What changed in Form 161?
CBDT Notification No. 134/2026, G.S.R. 871(E), dated 8 October 2026, makes two changes under the Income-tax (Sixth Amendment) Rules, 2026: it inserts “or waiver” after “imposition” in Rule 231 and substitutes Form No. 161. The replacement form’s heading is “Application for seeking waiver of penalty under section 440(2) of the Income-tax Act, 2025.” The notification says the rules come into force on publication in the Official Gazette; its date is not, by itself, confirmation of the Gazette publication date. CBDT Notification No. 134/2026
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This is a change to Form 161 under the 2026 Rules, not a general revision of income-tax return forms. The Income Tax Department FAQ maps the new Form 161 to former Form 68 under the Income-tax Rules, 1962, which was associated with section 270AA(2) of the Income-tax Act, 1961. The FAQ describes the application as seeking immunity from penalty under section 439 and prosecution under sections 478 or 479 in under-reporting or misreporting cases, subject to prescribed conditions. The notification itself describes the substituted form as an application for waiver of penalty; these descriptions come from different official materials and should not be treated as interchangeable legal explanations. Income Tax Department Form 161 FAQ
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The form is divided into personal information, assessment or reassessment order and payment information, and verification. It may pre-fill some information to the extent possible, but the applicant should check the entries against the relevant records. Amounts are to be stated in rupees unless the form specifies otherwise. CBDT Notification No. 134/2026
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Applicant and order details
Requested details include the applicant’s name, PAN, address, mobile number and email address; tax year; the section under which the order was passed; the document identification number; order and service dates; the due date for demand; and assessed income.
Under-reported income and payment calculation
The form asks for amounts of under-reported income, separating specified misreporting categories from cases not consequent to misreporting. Its calculation fields cover tax and interest payable on assessed income, tax payable on under-reported income, additional income-tax in lieu of penalty, and the total amount payable for waiver. The form specifies additional income-tax at 100% of item 14(i) and 120% of item 14(ii); the total is calculated using those amounts and the tax-and-interest field. It also requests payment details: BSR code, deposit date, challan serial number and amount.
These are fields and calculation instructions in the form, not individualized tax advice or a complete interpretation of section 440. Whether the provisions apply to a particular order, and how the amounts should be determined, depends on the governing law and the taxpayer’s circumstances.
Verification and address
The verification declares that no appeal has been filed in respect of the order and undertakes not to file an appeal before expiry of the period specified in section 440(5). The address should include the components listed by the form, such as country or region, building, street, PIN or ZIP code, locality, district and state; DIGIPIN may also be included.
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Who does the Department say may apply?
The Income Tax Department FAQ says Form 161 may be filed by a taxpayer—including an individual, company, LLP or trust—who has received an assessment or reassessment order under the Income-tax Act, 2025, paid the full tax and interest demanded, has not appealed and undertakes not to appeal before the period in section 440(5) expires, and seeks the stated immunity. The FAQ characterizes filing as optional. These are the FAQ’s stated conditions; check the statute and current official directions to assess a specific case. Income Tax Department Form 161 FAQ
What is the time limit for filing Form 161?
The Department FAQ states that Form 161 must be filed within one month from the end of the month in which the assessment or reassessment order is received. It describes the form as event-based: a taxpayer who opts to seek immunity files for each new eligible order. The FAQ’s publication date is not stated, so verify the applicable time limit and current directions before relying on it for a filing deadline. Income Tax Department Form 161 FAQ
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.How does the Department say Form 161 is submitted?
The FAQ says the form can be submitted only online through the Income Tax e-Filing portal. It identifies PAN, order and demand details, and proof of payment of tax and interest—including BSR code, challan serial number, date and amount—as required details. Check the portal’s live instructions for the current process rather than relying on an older interface description.
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1Repair Windows errors before they cause bigger problems2Scan for outdated or missing drivers - takes under a minute3Clear out junk files and repair common Windows errorsAccording to the FAQ, submission generates an acknowledgement number. It says applicants can track status through e-File → Income Tax Forms → View Filed Forms, and that acceptance or rejection is communicated electronically through the portal and to the registered email address and mobile number. Income Tax Department Form 161 FAQ
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