Good news: If penalty is imposed for misreporting of income or other cases you can apply for waiver of penalty using revised Form 161; Check the details

The Central Board of Direct Taxes (CBDT) on October 8, 2026, has introduced a revised Form 161, using which eligible taxpayers, including individuals, can apply for waiver of penalty imposed on them due to misreporting of income or other cases. This is good news since now due to the revised Form 161, taxpayers can resolve tax disputes at an earlier stage, reduce litigation and avoid potentially higher tax penalty liabilities. Also, earlier the Form 161 did not permit taxpayers to apply for waiver of penalty in cases which involving misreporting of income since it was previously excluded from the scope of immunity.

This notification was published in the e-gazette of India (G.S.R. 871(E) and says that the new Form 161 is set to become applicable from October 8, 2026 onwards.