CBDT has substituted Form 161 with a version expressly titled as an application for waiver of penalty under section 440(2) of the Income-tax Act, 2025. The revised form adds separate calculations for two specified misreporting categories and asks for details of the assessment, income, tax, interest, payments and appeal status.
The change updates the form; it does not establish that every taxpayer whose income was misreported qualifies for a waiver. The amended statute, the order in the taxpayer’s case and current filing instructions matter.
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What changed in revised Form 161?
CBDT Notification No. 134/2026-Income Tax, dated 8 October 2026, substitutes Form 161 and adds “or waiver” to Rule 231. The reproduced notification states that the amendment takes effect on publication in the Official Gazette. The new form’s heading is “Application for seeking waiver of penalty under section 440(2) of the Income-tax Act, 2025.”
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This is a change in the form’s stated purpose and contents, not proof that a particular application will be accepted. The notification has been reproduced by TaxGuru, but the reproduced text is not the Gazette file itself. Check the official Gazette and current Income Tax Department portal instructions before relying on it to file.
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What information does the revised form request?
The substituted form gathers information about the applicant, the assessment and the amount proposed for payment. Its fields include:
- Applicant details: name, PAN, address, mobile number and email address.
- Assessment or reassessment order: tax year, statutory section, document identification number (DIN), order date, service date and demand due date.
- Income and tax: assessed income, specified categories of under-reported income, tax and interest payable on assessed income, and tax payable on the under-reported income.
- Payment details: BSR code, deposit date, challan serial number and amount.
- Verification: a declaration that the information is true, a statement that no appeal has been filed, and an undertaking not to file an appeal before expiry of the period specified in section 440(5).
The form notes that information may be pre-filled to the extent possible and that amounts should be stated in rupees. Pre-filled information should still be checked against the assessment order, payment records and other relevant documents.
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How does it treat the misreporting categories?
The form separates three descriptions of under-reported income: income resulting from misreporting under section 439(11)(a)–(f), income under section 439(11)(g), and under-reported income not resulting from misreporting. It also provides separate additional-income-tax calculations for the first two categories.
| Form category | Calculation shown in the reproduced form | What to keep in mind |
|---|---|---|
| Misreporting under section 439(11)(a)–(f) | 100% of the tax amount identified in the corresponding under-reported-income field | The reproduced form labels this “100% of 14(i).” Confirm the field and calculation against the Gazette and applicable statutory text. |
| Misreporting under section 439(11)(g) | 120% of the tax amount identified in the corresponding under-reported-income field | The reproduced form labels this “120% of 14(ii).” Confirm the field and calculation against the Gazette and applicable statutory text. |
The form then adds the additional income-tax amount to tax and interest to calculate the total amount payable for waiver. These entries describe the calculations printed in the reproduced form; they are not a finding about which legal category applies to a taxpayer. The form does not establish the facts or authorize an applicant to choose whichever category produces a lower amount. Classification should be checked against the assessment order and the governing law.
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Keep the two Acts’ numbering distinct. The Income-tax Act, 2025 materials and revised form refer to section 439. The Income Tax Department’s general penalty page describes the earlier section 270A framework under the Income-tax Act, 1961, including a 50% penalty on tax payable on under-reported income and a 200% penalty where under-reporting results from misreporting. Those earlier-Act figures should not be substituted for the revised form’s section 439 calculations.
Does the earlier one-month filing deadline still apply?
The Income Tax Department’s Form 161 FAQ describes an earlier process: it says an applicant could apply after receiving an assessment or reassessment order, paying the full tax and interest demand, and not filing an appeal while undertaking not to appeal during the period specified in section 440(5). It gives a filing limit of one month from the end of the month in which the order was received.
That FAQ predates the October 2026 substitution and does not reflect the revised form’s waiver wording and additional calculations. The available materials do not establish whether that deadline and those eligibility conditions continue unchanged under the amended process. Do not treat the FAQ’s timeline as current filing advice without checking the amended statute, the official Gazette and live portal instructions.
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How to check which Form 161 requirements apply
- Locate the official amendment. Check the Gazette for Notification No. 134/2026-Income Tax dated 8 October 2026 and confirm its publication and effective wording.
- Read the applicable statutory provisions. Review the current text of sections 439 and 440, including section 440(5), rather than relying on section 270A explanations from the 1961 Act.
- Check the live filing route. Confirm the current Income Tax Department portal workflow, form version, deadline and required documents before submitting an application.
- Reconcile the figures and status. Compare the form’s income categories and calculations with the order, tax and interest demand, challans and appeal status. If classification, payment or appeal consequences are unclear, obtain advice specific to the case.
The Department’s notified Income-tax Rules, 2026, dated 20 March 2026, contain the earlier Form 161. That version predates the October substitution, so it should be treated as a historical reference rather than assumed to be the current form.
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