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Income-tax Rules, 2026 | Rule 198 of 333

Rule 198 - Reduction or waiver of penalty and immunity under section 379

Reviewed by CA Nikhil Gupta · Last reviewed 29 August 2026

Local extract available Legacy mapping: 44DAC

198Rule number
1356Local text characters
0Linked Forms

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Primary authority: Notification No. 22/2026 / G.S.R. 198(E)

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Rule text held in the production corpus

Power to reduce or waive penalty imposable or grant immunity from prosecution, or both, under section 379. 198. (1) The Dispute Resolution Committee shall, upon receipt of intimation as per paragraph 4(1)(xix) of the e-Dispute Resolution Scheme, 2022, for reasons to be recorded in writing and subject to such conditions as it may think fit to impose, grant to the person who made the application for dispute resolution under section 379 reduction or waiver of penalty imposable, or immunity from prosecution, or both, in respect of the order which is the subject matter of resolution, if it is satisfied that such person has— (i) paid the tax due on the returned income in full; and (ii) co-operated with the Dispute Resolution Committee in the proceedings before it. (2) No immunity shall be granted by the Dispute Resolution Committee in a case where proceedings for prosecution for an offence have been initiated before the date of receipt of the application referred to in paragraph 4(1)(i) of the e-Dispute Resolution Scheme, 2022. (3) An immunity, reduction or waiver of penalty granted to a person under sub-rule (1) shall stand withdrawn if such person fails to comply with any of the conditions subject to which it was granted, and thereupon the provisions of the Act shall apply as if such immunity, reduction or waiver had never been granted.

Local extract SHA-256: c3265127a03988e008e98fe9b00ee894551fa76c6fd6fc1b61c0a590b3960594. This hash authenticates the local extract only; it does not certify that every amendment, table or Gazette footnote has been consolidated.

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