Extracts of Rules 194, 195, and 196 of the Draft Income-tax Rules, 2026 lay down procedural requirements relating to declarations, appeal deferment applications, and the constitution of the Dispute Resolution Committee (DRC). Rule 194 prescribes that a declaration under section 375(1) must be furnished in Form No. 117 and verified as specified therein, signed by the person mentioned in rule 167(3). Where submitted before the Joint Commissioner (Appeals) or Commissioner (Appeals), it must be filed in duplicate, and where submitted before the Appellate Tribunal, in triplicate. Rule 195 provides that an application under section 376(2) seeking deferment of filing an appeal before the Appellate Tribunal or the jurisdictional High Court shall be made in Form No. 118 by the Assessing Officer. Rule 196 deals with the constitution of the Dispute Resolution Committee under section 379. The Central Government shall constitute a DRC for every region of the Principal Chief Commissioner of Income-tax. Each Committee shall comprise three members: two retired Indian Revenue Service (Income-tax) officers who have served as Commissioner of Income-tax or in an equivalent or higher post for at least five years, and one serving officer not below the rank of Principal Commissioner or Commissioner of Income-tax, as specified by the Board. Members are appointed for three years, retired members may receive per-case and sitting fees, decisions are taken by majority, and members may be removed by the Central Government after recording reasons and providing an opportunity of being heard.
Extract of Rule No. 194, 195 and 196 of Draft Income-tax Rules, 2026
Rule 194
Declaration under section 375 of the Act.
(1) The declaration referred to in section 375(1) shall be in Form No. 117, and shall be verified in the manner indicated therein.
(2) The declaration and the verification referred to in sub-rule (1) shall be signed by the person specified in rule 167(3).
(3) The declaration referred to in sub-rule (1) shall, —
(a) in a case where it is furnished to the Joint Commissioner (Appeals) or the Commissioner (Appeals), be in duplicate, and
(b) in a case where it is furnished to the Appellate Tribunal, be in triplicate.
Rule 195
Application under section 376 to defer filing of appeal before the Appellate Tribunal or the jurisdictional High Court.
The application referred to in section 376(2), required to be made before the Appellate Tribunal or the jurisdictional High Court, as the case may be, shall be made in Form No. 118 by the Assessing Officer.
Rule 196
Constitution of Dispute Resolution Committee under section 379 of the Act.
(1) The Central Government shall constitute a Dispute Resolution Committee for every region of Principal Chief Commissioner of Income-tax for dispute resolution, as provided under section 379.
(2) Each Dispute Resolution Committee shall consist of three members, as under: —
(a) two members shall be retired officers from the Indian Revenue Service (Income-tax), who have held the post of Commissioner of Income-tax or any equivalent or higher post for five years or more; and
(b) one serving officer not below the rank of Principal Commissioner of Income-tax or Commissioner of Income-tax as specified by the Board.
(3) The members shall be appointed by the Central Government for a period of three years.
(4) The Central Government may fix a sum to be paid as fee to a member, who is retired officer, on a per case basis, along with a sitting fee, so decided by the Board.
(5) The decision of the Dispute Resolution Committee shall be by majority.
(6) The Central Government may, by recording reasons in writing and after giving an opportunity of being heard, remove any member from the Dispute Resolution Committee.
