Form 161 – CBDT New Update (October 2026)

The Central Board of Direct Taxes (CBDT) revised Form 161 on 8 October 2026 through Notification No. 134/2026.

What is Form 161?

Form 161 is an application that allows eligible taxpayers to request relief from income tax penalties and immunity from certain prosecution proceedings.

Practical example

Suppose a taxpayer reports ₹6 lakh income, but the Income Tax Department determines the correct income as ₹9 lakh.

The taxpayer may need to pay additional tax, interest, and applicable penalties. After fulfilling the conditions, they can apply through Form 161 to seek penalty relief.