CBDT Notifies Procedure to File 34BB to Withdraw Pending Application
Tax Exemption

As per the Income Tax Rules, the assessee can exercise the option to withdraw his application filed to the Income Tax Settlement Commission (ITSC) if such application is pending. The Director-General of Income Tax (Systems) vide Notification No. 05 of 2021 prescribes the procedure, format and standards for the same on 24th May 2021.

With the discontinuance of the income tax settlement commission with effect from 1st Feb 2021, no taxpayer can make an application for settlement from that date. An option is given to the taxpayer to withdraw the pending application filed to the Settlement Commission. The taxpayer has the option to withdraw within three months from the date of commencement of the Finance Act, 2021.

To exercise this option, the taxpayer has to furnish and upload Form No. 34BB in the manner as prescribed in Rule 44DA of the income tax. The taxpayer can download Form No. 34BB from the URL link https://tinyurl.com/form34bb. The details of the link have also been made available on the e-filing portal of the income tax department. The taxpayer has to furnish the following basic information:

  • PAN
  • Name of the assessee
  • Assessment year
  • Date of filing of the application under section 245C
  • Application number
  • The bench of the Settlement Commission
  • PCIT (in the format PCIT-xx, Place)
  • Email ID
  • Mobile number

The taxpayer should provide the details by 15th June 2021. The taxpayer should be a registered user on the e-filing portal of the income tax department to proceed further. Based on the above details, the taxpayer will receive an intimation to his e-filing account requiring him to print, sign and upload the scanned copy of Form No. 34BB. 

The taxpayer shall log in to the income tax e-filing portal “www.incometaxindiaefiling.gov.in” (will be replaced by a new e-filing 2.0 portal from 7th June 2021). After logging in to the portal, select ‘Furnishing of Form 34BB’ under the e-proceedings tab, upload the signed printout of the form and submit. The taxpayer must upload the signed printout of the form within the date specified under the provisions of the Income Tax Act. The date of uploading such a signed form will be considered the date of withdrawal of the application.

For any clarifications/feedback on the topic, please contact the writer at namita.shah@cleartax.in

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