Rule 230 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Rule 230 of the Income-tax Rules, 2026 puts a section 434 refund claim into Form No. 160 with a copy of the agreement attached; rule 231 puts the application for immunity from penalty and prosecution under section 440 into Form No. 161.
Rule 230 — the refund claim
A claim for refund under section 434 shall be made in Form No. 160, by the claimant himself or through a duly authorised agent, and shall be accompanied by a copy of an agreement or other arrangement referred to in section 434. The 1962 parallel is rule 40G.
| Element | Provision in rule 230 |
|---|---|
| Form | Form No. 160 |
| Who may claim | The claimant himself, or a duly authorised agent |
| Mandatory enclosure | A copy of the agreement or other arrangement referred to in section 434 |
Rule 230 uses the words shall be accompanied by. A section 434 refund arises out of an agreement or other arrangement, and without a copy of it there is nothing on which the officer can test the claim. This is the single most common reason such a claim is returned. Attach the executed document — and where it is in a foreign language, a translation, because the officer must be able to read the term relied on.
Note the express permission for a duly authorised agent in rule 230. Many claimants under section 434 are non-residents with no Indian presence, and the rule contemplates the claim being made on their behalf. The authority should be produced with the form; the rule requires the agent to be duly authorised, and an unevidenced agency is the second common defect.
Rule 231 — the immunity application
An application to the Assessing Officer to grant immunity from imposition of penalty under section 439 and from initiation of proceedings under section 478 or section 479 shall be made in Form No. 161. The 1962 parallel is rule 129.
| Relief sought | Provision |
|---|---|
| Immunity from imposition of penalty | Section 439 |
| Immunity from initiation of proceedings | Section 478 or section 479 |
| Form | Form No. 161 |
| Addressed to | The Assessing Officer |
Form No. 161 covers both heads of relief, so a separate application for the prosecution limb is unnecessary. Note the contrast with rule 198, where comparable relief — waiver of penalty and immunity from prosecution — is granted by the Dispute Resolution Committee on an application in Form No. 119. Rule 231 is the Assessing Officer route under section 440. The two schemes are distinct: different section, different forum, different form, different conditions. Choosing the wrong one costs the limitation period as well as the fee.
Rule 231 is a pure form-prescribing rule. It states no conditions, no time limit and no consequence of breach — all of that sits in section 440 and in sections 439, 478 and 479. An adviser reading rule 230 and rule 231 alone learns only which forms to use.
What the two rules have in common
- Both are one-sentence rules that name a form and nothing more.
- Both concern a taxpayer-initiated application rather than a departmental act.
- Neither states a time limit — take it from the section.
- Rule 230 alone imposes a documentary condition: the agreement must accompany the claim.
Worked example
| Facts | Position under rule 230 and rule 231 |
|---|---|
| Refund claim under section 434 filed on Form No. 160 with the agreement | Complete under rule 230 |
| Same claim with the agreement to follow | Defective — the copy must accompany the claim |
| Claim filed by an Indian representative | Permissible if he is a duly authorised agent; produce the authority |
| Claim made on a letter with the agreement attached | Not in the prescribed form under rule 230 |
| Agreement in a foreign language, no translation | Attach a translation so the term relied on can be read |
| Assessee seeks immunity from penalty and prosecution under section 440 | One application in Form No. 161 to the Assessing Officer |
| Assessee files two applications, one per limb | Unnecessary — Form No. 161 covers both |
| Assessee files Form No. 119 with the Dispute Resolution Committee instead | A different scheme under section 379 and rule 198, not section 440 |
| Adviser looks for the immunity conditions in rule 231 | They are in section 440; the rule prescribes only the form |
Compliance checklist
- File the section 434 claim on Form No. 160, not on a letter.
- Attach the agreement or other arrangement with the claim, not afterwards.
- Where an agent files, produce evidence that he is duly authorised.
- Provide a translation of any foreign-language agreement.
- For immunity under section 440, use Form No. 161 addressed to the Assessing Officer.
- Cover both the section 439 penalty limb and the section 478 or 479 prosecution limb in the one application.
- Take the conditions and timing from sections 434 and 440, since rule 230 and rule 231 supply none.
- Do not confuse the section 440 route with the Dispute Resolution Committee route under section 379.
Common mistakes
- Filing the refund claim without the agreement.
- Filing through an agent without evidence of authority.
- Splitting the immunity application into two forms.
- Approaching the Dispute Resolution Committee when the relief sought is under section 440.
- Searching rule 231 for eligibility conditions that live in the section.
Which year this governs
The Income-tax Rules, 2026 are made under the Income-tax Act, 2025. The 1962 parallels are rule 40G for rule 230 and rule 129 for rule 231, given for tracing only. Verify the current text and form numbers before filing.