Section Chapter XIX-A (Sections 245A to 245L)
Settlement of Cases (Income Tax Settlement Commission - ITSC)
Quick Answer
Section Chapter XIX-A (Sections 245A to 245L) (Settlement of Cases (Income Tax Settlement Commission - ITSC)) has been deleted under the Income-tax Act, 2025, effective 1st April 2026.
What changed for Section Chapter XIX-A (Sections 245A to 245L)
Section Chapter XIX-A (Sections 245A to 245L) of the 1961 Act sets out the rules on settlement of cases (income tax settlement commission - ITSC). Allowed taxpayers to approach the Settlement Commission to voluntarily disclose undisclosed income and seek immunity from penalty and prosecution. The Commission's order was final.
The Income-tax Act, 2025 does not retain Section Chapter XIX-A (Sections 245A to 245L): it is deleted with effect from 1st April 2026, so no equivalent section replaces it. NA. The ITSC was permanently abolished via Finance Act 2021. Pending cases were transferred to the Interim Board for Settlement.
On the ground, changes to Section Chapter XIX-A (Sections 245A to 245L) carry a Critical impact. Removed the biggest 'escape route' for heavily raided taxpayers.
Sec Chapter XIX-A (Sections 245A to 245L)
Provision Summary
Allowed taxpayers to approach the Settlement Commission to voluntarily disclose undisclosed income and seek immunity from penalty and prosecution. The Commission's order was final.
Deleted
Provision Summary
NA. The ITSC was permanently abolished via Finance Act 2021. Pending cases were transferred to the Interim Board for Settlement.
Key Changes & Highlights
- Avenue for out-of-court settlement and immunity completely closed.
Frequently Asked Questions
What does Section Chapter XIX-A (Sections 245A to 245L) of the Income Tax Act 1961 deal with?
Section Chapter XIX-A (Sections 245A to 245L) of the Income Tax Act, 1961 covers settlement of cases (income tax settlement commission - ITSC). Allowed taxpayers to approach the Settlement Commission to voluntarily disclose undisclosed income and seek immunity from penalty and prosecution. The Commission's order was final.
Does Section Chapter XIX-A (Sections 245A to 245L) survive under the Income-tax Act, 2025?
Section Chapter XIX-A (Sections 245A to 245L) has been deleted under the Income-tax Act, 2025, with no successor section carrying it forward from 1st April 2026. NA. The ITSC was permanently abolished via Finance Act 2021. Pending cases were transferred to the Interim Board for Settlement.
Why does the change to Section Chapter XIX-A (Sections 245A to 245L) matter for taxpayers?
The transition impact for Section Chapter XIX-A (Sections 245A to 245L) is rated Critical. Removed the biggest 'escape route' for heavily raided taxpayers.
What are the key changes to Section Chapter XIX-A (Sections 245A to 245L) under the Income-tax Act, 2025?
Avenue for out-of-court settlement and immunity completely closed. These points are specific to Section Chapter XIX-A (Sections 245A to 245L) (Settlement of Cases (Income Tax Settlement Commission - ITSC)).
Disclaimer: This mapping of Section Chapter XIX-A (Sections 245A to 245L) (Settlement of Cases (Income Tax Settlement Commission - ITSC)) under the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section Chapter XIX-A (Sections 245A to 245L) is currently marked Deleted, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
Need professional help on Section Chapter XIX-A (Sections 245A to 245L)?
Compare trusted providers — both offer CA services ready for the Income-tax Act, 2025.
*Affiliate links — we may earn a small commission at no extra cost to you. Disclosure.
Want to calculate tax on this section?