Monetary limits prescribed for compounding of offence :

Are there any monetary limits prescribed for compounding of offence?

Ans. Yes. The lower limit for compounding amount is to be the greater of the following amounts: –

• 50% of tax involved, or

• Rs. 10,000.

The upper limit for compounding amount is to be greater of the following amounts: –

• 150% of tax involved or

• Rs. 30,000.