No. A new application under section 245C of India’s Income-tax Act cannot be filed in 2026. Section 245C(5) says, “No application shall be made under this section on or after the 1st day of February, 2021.” Form 34B therefore describes a historical route, not an open filing option.
If you have a pending settlement matter, a notice referring to the former Settlement Commission, or a case that may have abated, do not submit an old form or pay the former fee without first confirming the file’s status with the income-tax authority and obtaining advice from a qualified tax professional. The correct next step depends on whether your original matter was accepted, transferred, remained pending, or returned to ordinary assessment.
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What the 2021 cutoff means
The legal change is a filing cutoff, not a new procedural deadline. Section 245C(5) prevents an assessee from making an application under that section on or after 1 February 2021. Consequently, a taxpayer discovering Form 34B today cannot use it to start a fresh settlement proceeding, even if an online article still describes the form, fee and filing copies.
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- You may be checking whether an application filed before the cutoff was complete.
- Your records, tax notice or adviser’s letter may refer to Form 34B, Rule 44C or sections 245C and 245D.
- A legacy matter may have to be traced to its present authority or dealt with through ordinary assessment after abatement.
These are status and transition questions. They are not permission to make a new application.
What counted as a “case” under the former law
Section 245A defined a qualifying “case” as an assessment proceeding pending before an Assessing Officer when the application was made. The timing mattered: the settlement route was connected to an existing, live assessment proceeding rather than an open-ended request to negotiate a tax bill.
Practical meaning of the pending-assessment requirement
- Identify the assessment proceeding to which the proposed settlement related.
- Check the date on which that proceeding was pending before the Assessing Officer.
- Match the proceeding with the taxpayer, assessment year and notices in the file.
- Do not assume that an old demand, a completed assessment or a general disagreement with tax automatically qualified as a “case.”
For a legacy file, preserve the assessment notice, correspondence, returns, statements and proof of the filing date. Those records help establish what was pending when the application was made.
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The historical Form 34B process
The steps below explain the procedure that applied to applications made under the former regime. They should not be read as a current filing checklist.
1. Establish that the matter was eligible
Before preparing anything, the applicant had to connect the request to a case meeting the statutory definition in section 245A: an assessment proceeding pending before the Assessing Officer. The application was made at a stage of that case, not after inventing a separate dispute.
A sound historical file would therefore identify the assessment proceeding, the authority handling it and the material that showed it was pending on the application date. If those details cannot be established, the eligibility question requires professional review rather than assumption.
2. Make a full and true disclosure
Section 245C(1) required a demanding disclosure. The applicant had to state:
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- income that had not previously been disclosed before the Assessing Officer;
- the manner in which that income was derived;
- the additional amount of income-tax payable on that income; and
- the other prescribed particulars.
The statutory wording was:
“An assessee may, at any stage of a case relating to him, make an application in such form and in such manner as may be prescribed, and containing a full and true disclosure of his income which has not been disclosed before the Assessing Officer, the manner in which such income has been derived, the additional amount of income-tax payable on such income and such other particulars as may be prescribed, to the Settlement Commission to have the case settled.”
“Full and true” was not a request to provide a rough estimate. A historical applicant had to identify the previously undisclosed income, explain its derivation and quantify the additional tax. The figures and explanation needed to be internally consistent with the supporting statements and documents filed with the form.
3. Complete Form 34B under Rule 44C
Rule 44C(1) prescribed Form 34B for an application for settlement under section 245C(1). It required the application to be made in quintuplicate and verified in the manner indicated in the form.
Quintuplicate means five copies. The historical file should therefore show the completed form, the prescribed verification, the required signature, the annexure and the accompanying statements or documents. A copy retained by the applicant should be identical to the version lodged, including all schedules and calculations.
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“An application for settlement of a case under sub-section (1) of section 245C shall be made in quintuplicate in Form No. 34B and shall be verified in the manner indicated therein.”
Form 34B is now a record of the former route. Finding a blank copy online does not make it a current application form.
4. Pay the historical prescribed fee
Rule 44C(3) specified a fee of ₹500 for the application. That amount belongs to the historical procedure and should not be treated as a current filing charge, because section 245C(5) closes new applications from 1 February 2021.
For an old application, keep the payment receipt or other proof that accompanied the filing. If the record is incomplete, ask the tax authority or adviser to verify the original file instead of paying the amount again on the assumption that a duplicate submission is valid.
5. Intimate the Assessing Officer on the filing date
On the date of filing, the assessee had to send an intimation in Form 34BA to the Assessing Officer. This was a separate communication from the Form 34B application. A legacy file should contain evidence showing when the intimation was sent and to which Assessing Officer.
When reconstructing an old case, compare the dates on the Form 34B acknowledgment, Form 34BA intimation, fee proof and assessment correspondence. A date mismatch can affect how the history of the proceeding is understood.
6. Note the initial section 245D(1) timetable
Section 245D(1) provided for notice within seven days and an order within fourteen days. The statutory proviso also addressed the consequence if no order was passed within that period. Because the effect depends on the exact statutory text and the facts of the application, a pending matter should be checked against the applicable version of the law and the actual orders in the file.
Do not infer acceptance, rejection or automatic disposal merely from the passage of fourteen days. The file should be checked for the notice, order, service details and any later proceeding.
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What a complete historical application file should contain
For a legacy matter, assemble one chronological file rather than relying on a single form. Include:
- the assessment notice and documents showing that the assessment proceeding was pending;
- the signed Form 34B and all five copies, if available;
- the verification, annexure, statements and supporting documents submitted with the application;
- the calculation of previously undisclosed income and additional income-tax;
- proof of the ₹500 fee paid under Rule 44C(3);
- Form 34BA and evidence that the Assessing Officer was intimated on the filing date;
- the Settlement Commission’s notice, order and proof of service; and
- later correspondence showing transfer, continuation, abatement or return to the assessment authority.
If a document is missing, label the gap and obtain a certified or official copy where possible. Re-creating a historical application from memory can introduce figures or dates that conflict with the department’s record.
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What happens to a pending matter after the cutoff
The cutoff does not by itself tell you the present status of every application filed before 1 February 2021. A pending matter may have a sequence of orders, transfers or other procedural events. The only safe way to determine its position is to trace the case number, assessment year, taxpayer identity and latest order with the relevant income-tax authority.
Cases described as pending before an Interim Board
Some legacy correspondence may refer to an Interim Board. If your papers use that description, ask the authority handling the file to confirm the current forum, case number, next procedural date and documents required. No single current public portal or contact route should be assumed without checking the latest official communication.
Abatement under section 245HA
Section 245HA provides that, when settlement proceedings abate, the case is to be disposed of by the Assessing Officer or another relevant income-tax authority under the Income-tax Act. Abatement therefore sends the matter back into ordinary assessment administration; it is not a new settlement approval and does not preserve Form 34B as an available remedy.
Read the abatement order carefully. It should be matched to the assessment year, the original settlement application and the authority now responsible. Keep proof of service and comply with any notice issued in the resumed assessment process.
Former settlement route versus current case handling
| Question | Historical settlement application | Position for a new matter in 2026 |
|---|---|---|
| Can a new filing be made? | Applications could be made under section 245C before the statutory cutoff. | No application may be made under section 245C on or after 1 February 2021. |
| What had to be pending? | An assessment proceeding had to be pending before the Assessing Officer when the application was made. | A taxpayer cannot create eligibility by filing Form 34B now; the old “case” test does not reopen the route. |
| What disclosure was required? | Full and true disclosure of previously undisclosed income, its manner of derivation, additional tax and prescribed particulars. | Those historical disclosure requirements do not create a current application channel. |
| Which form and fee applied? | Form 34B in quintuplicate, with verification; Rule 44C(3) specified ₹500. | Form 34B and the ₹500 figure should be treated as historical records, not current filing instructions. |
| Who handled the matter? | The settlement process involved the Settlement Commission under the former statutory framework, with the Assessing Officer notified through Form 34BA. | Confirm the responsible authority from the latest official notice or case record. |
| What if proceedings abated? | Section 245HA directed disposal by the Assessing Officer or another relevant income-tax authority under the Act. | Respond through the ordinary assessment process identified in the abatement or subsequent notice. |
How to check a legacy case without filing a new form
- Collect identifiers. Write down the taxpayer’s permanent account details, assessment year, original application date, case number and the Assessing Officer’s details.
- Build a date list. Record the assessment notice, Form 34B filing, Form 34BA intimation, fee payment, notices, orders and any abatement or transfer communication.
- Locate the latest order. The latest order, not an old website article, determines which authority is currently dealing with the matter.
- Ask a focused status question. Request confirmation of whether the application was admitted, remained pending, was transferred, abated or returned for ordinary assessment.
- Obtain advice before responding. Give a tax-litigation adviser the complete chronology and every notice before signing a statement, making a payment or submitting a reply.
- Meet the current notice deadline. If the file has returned to the Assessing Officer, follow the deadline and submission method in the new notice; do not send a response only to the former Settlement Commission unless the notice directs you to do so.
Common mistakes to avoid
Using a current date on an old form
Downloading Form 34B and entering a 2026 date does not overcome section 245C(5). The cutoff is statutory.
Confusing an old fee with a live filing
The ₹500 amount came from Rule 44C(3). Paying it today does not establish a valid new application.
Leaving out the assessment connection
The former definition required a proceeding pending before the Assessing Officer. A general request to settle an already completed or unrelated dispute did not satisfy that description merely because tax was payable.
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Making an incomplete disclosure
The historical standard required a full and true disclosure, the manner in which income was derived and the additional tax payable, together with prescribed particulars. A partial narrative or unexplained estimate should not be presented as compliant.
Assuming silence is an order
The fourteen-day timetable in section 245D(1) should be checked against the actual notice, order and statutory proviso. Silence alone is not a substitute for reading the case record.
Ignoring an abatement notice
After abatement under section 245HA, the matter is handled under the ordinary Act by the Assessing Officer or another relevant authority. Missing that transition can lead to missed response dates.
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Obtain specialist advice when the file involves undisclosed income, several assessment years, an uncertain filing date, an incomplete Form 34B record, an Interim Board reference, an abatement order or a fresh assessment notice. Ask the adviser to answer these specific questions in writing:
- Was an application actually filed before 1 February 2021, and can that filing be proved?
- What was the assessment proceeding that qualified as the “case” under section 245A?
- What was disclosed, and how was the additional income-tax calculated?
- Which authority currently has the file?
- Has any order caused the proceedings to abate under section 245HA?
- What deadline, payment or ordinary-assessment response now applies?
Advice should be based on the official case record, not on an online copy of Form 34B or a generic settlement template.
Bottom line for taxpayers asking in 2026
There is no legal route to file a new income-tax settlement application under section 245C in 2026. Form 34B, the ₹500 fee, quintuplicate copies and Form 34BA explain how the former process worked for qualifying cases pending before an Assessing Officer. If your application predates 1 February 2021, establish its present status from the authority’s records. If it abated, section 245HA sends the matter back to ordinary assessment administration, where the next notice and deadline control.
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