Assessment of persons leaving India
[Section-317 as per the Income Tax Act, 2025 (this Act) w.e.f. 1st April, 2026.]
Section 317(1) of Income Tax Act 2025
317(1) Irrespective of anything contained in section 4, when it appears to the Assessing Officer that any individual may leave India during the current tax year or shortly after its expiry, with no present intention of returning to India, the total income of such individual for the period beginning from the first day of that current tax year up to the probable date of departure from India (referred to as specified period in this section) shall be chargeable to tax in that current tax year.
Section 317(2) of Income Tax Act 2025
317(2) The total income of each completed tax year or part of any tax year included in the specified period shall be chargeable to tax at the rate or rates in force in that tax year, and separate assessments shall be made in respect of each such completed tax year or part of any tax year.
Section 317(3) of Income Tax Act 2025
317(3) The Assessing Officer may estimate the income of such individual for such specified period or any part thereof, where it cannot be readily determined in the manner provided in this Act.
Section 317(4) of Income Tax Act 2025
317(4) For the purposes of making an assessment under sub-section (1), the Assessing Officer may serve a notice upon such individual requiring him to furnish within such time, not being less than seven days, as specified in the notice, a return in the same form and verified in the same manner as a return under section 268(1), setting forth his––
- (a) total income for each completed tax year comprised in such specified period referred to therein; and
- (b) estimated total income for any part of the tax year comprised in such specified period,
and the provisions of this Act shall, so far as may be, and subject to the provisions of this section, apply as if the notice were a notice issued under section 268(1).
Section 317(5) of Income Tax Act 2025
317(5) Irrespective of anything contained in section 268(1) or 280, where the provisions of sub-section (1) are applicable, the Assessing Officer may issue any notice under section 268(1) or 280, requiring the furnishing of the return by such individual in respect of any tax chargeable under any other provisions of this Act, within such period, not being less than seven days, as the Assessing Officer may think proper.
Section 317(6) of Income Tax Act 2025
317(6) The tax chargeable under this section shall be in addition to the tax, if any, chargeable under any other provisions of this Act.
FAQs on Section 317 of Income Tax Act 2025
Who is covered under Section 317 of the Income Tax Act, 2025?
Section 317 applies to an individual who may leave India during the current tax year or shortly after its end, with no present intention of returning.
What is meant by “specified period” in Section 317?
The specified period refers to the duration beginning from the first day of the current tax year up to the probable date of departure from India.
Is Section 317 applicable even if other provisions of the Act apply?
Yes, Section 317(1) overrides Section 4, making it applicable regardless of other general provisions regarding chargeability.
How is income assessed for the specified period under Section 317?
The total income for the specified period is taxed in the current tax year.
At what rates is the income charged under Section 317(2)?
The income is charged at the rates in force for each completed tax year or part of a tax year included in the specified period, with separate assessments for each period.
Can the Assessing Officer estimate income if it is not easily determinable?
Yes, under Section 317(3), the Assessing Officer may estimate the income for the specified period or part thereof if it cannot be readily determined.
What kind of notice can the Assessing Officer issue under Section 317(4)?
The Assessing Officer can serve a notice requiring the individual to file a return within a minimum of seven days, stating income details for completed years and estimated income for the part of the tax year.
Is the return under Section 317(4) similar to a normal return under the Act?
Yes, the return must be in the same form and verified in the same manner as a return under Section 268(1).
Can the Assessing Officer issue other types of notices in such cases?
Yes, under Section 317(5), the Assessing Officer may issue notices under Section 268(1) or 280 to require filing returns for taxes chargeable under any other provisions of the Act.
What is the minimum time allowed for compliance with such notices?
The minimum time allowed for furnishing returns under any notice in this context is seven days.
Is the tax charged under Section 317 in addition to other taxes?
Yes, according to Section 317(6), the tax under this section is in addition to any tax chargeable under other provisions of the Act.
Why is Section 317 necessary in the Income Tax Act, 2025?
It ensures tax recovery from individuals who may leave India with no intention of returning, thereby safeguarding the revenue.
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