Notification of the appointed date to give effect to the amendments made by the Finance Act, 2021 to the Chapter XIX B of the Income tax Act, 1961

## Report on Notification S.O. 3562(E) Regarding Income-tax Act, 1961 **1. Executive Summary:** This report analyzes Notification S.O. 3562(E) issued by the Ministry of Finance, Department of Revenue, Central Board of Direct Taxes (CBDT), published in the Gazette of India on September 1, 2021. This notification pertains to the Income-tax Act, 1961. The core purpose of this notification is to appoint a specific date for the application of certain provisos and subsections related to settlement of income tax cases. The key finding is that the 1st of September, 2021, is designated as the effective date for provisions concerning sections 245O, 245P, 245Q, 245R, 245S, 245T, 245U, and 245V of the Income-tax Act, 1961, relating to the settlement commission. **2. Introduction:** This report provides an overview and analysis of Notification S.O. 3562(E) pertaining to the Income-tax Act, 1961, based solely on the information contained within the provided text. The aim is to inform affected parties about the notification's purpose, provisions, and potential impact. **3. Policy Overview:** This notification is related to the Income-tax Act, 1961. The core objective, as inferred from the text, is to establish a specific date for the operationalization of certain sections (245O, 245P, 245Q, 245R, 245S, 245T, 245U, and 245V) of the Act. These sections relate to settlement commission for income tax disputes. **4. Background and Rationale:** The notification's likely purpose is to streamline or clarify the implementation of provisions related to income tax settlement procedures. While the specific reasons for choosing September 1, 2021, are not detailed in the text, the action suggests a need to formally activate these sections of the Act for practical application and dispute resolution. **5. Key Provisions / Changes:** This notification appoints "1st day of September, 2021" as the date for the purposes of the second proviso to subsection 1 of section 245O, subsection 2 of section 245P, subsection 4 of section 245Q, subsection 8 of section 245R, subsection 3 of section 245S, subsection 3 of section 245T, subsection 3 of section 245U and the proviso to section 245V of the Income-tax Act, 1961. This means that these specific sections, related to the settlement commission process will be effective from this date. **6. Target Audience and Stakeholders:** The target audience includes: * Taxpayers potentially seeking to utilize the settlement commission process under sections 245O, 245P, 245Q, 245R, 245S, 245T, 245U, and 245V. * Tax professionals and advisors who guide taxpayers through the settlement process. * The Income Tax Department and the Central Board of Direct Taxes (CBDT), who are responsible for administering and implementing these provisions. **7. Implementation Aspects (Inferred):** * **Responsible agency:** The Central Board of Direct Taxes (CBDT), Department of Revenue, Ministry of Finance. * **Timeline:** The notification specifies that the effective date for the mentioned sections is September 1, 2021. No specific procedures beyond this date are detailed in the provided text. **8. Expected Outcomes / Impact of Changes:** The intended outcome of this notification is likely to: * Provide a clear and official start date for the application of the specified sections of the Income-tax Act, 1961. * Enable taxpayers to utilize the provisions related to the settlement commission process. * Facilitate the resolution of income tax disputes through the settlement commission mechanism. **9. Conclusion:** Notification S.O. 3562(E) is a crucial instrument for the operationalization of sections 245O, 245P, 245Q, 245R, 245S, 245T, 245U, and 245V of the Income-tax Act, 1961, by setting the effective date as September 1, 2021. This notification is significant for taxpayers, tax professionals, and the Income Tax Department, as it allows for the utilization of the settlement commission process. This is an important notification for the Tax Payers and all the Tax Professionals.

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