The CBDT has notified the Income-tax (Sixth Amendment) Rules, 2026 through Notification No. 134/2026 dated 8 October 2026. It substitutes Form 161, which is the application for seeking waiver of penalty under section 440(2) of the Income-tax Act, 2025, and amends rule 231 to cover waiver as well as imposition. It applies from its Gazette publication.
The revised form asks for details of the assessment or reassessment order, the under-reported income (split between misreporting and other cases), the tax and additional income-tax payable in lieu of penalty, and challan details of amounts paid. The applicant must also declare that no appeal has been or will be filed against the order within the period set out in section 440(5).
Who it affects: taxpayers who have received assessment or reassessment orders with under-reported income.
What to do: review any recent order promptly, since the waiver route requires payment and gives up the right to appeal.
Source: CBDT, Notification No. 134/2026 (https://www.incometax.gov.in/iec/foportal/sites/default/files/2026-10/Notification-no-134-2026.pdf)