DRC can waive penalties or grant immunity under Section 245MA(2) if conditions in Rule 44DAC are met.

The Dispute Resolution Committee (DRC) under Section 245MA(2) of the Income Tax Act has the authority to reduce or waive penalties or grant immunity from prosecution for resolved disputes. Rule 44DAC outlines conditions for such waivers or immunity, requiring full tax payment on returned income and cooperation with the DRC. The DRC must document reasons for granting such relief, and no immunity is provided if prosecution proceedings began before the application. Immunity can be withdrawn if conditions are violated, reverting to standard provisions of the Income Tax Act, 1961.