Section 157A of Income Tax Act for AY 2023-24

Faceless rectification, amendments and issuance of notice or intimation. Section 157A of Income Tax Act amended by Finance Act and IT Rules.

Amended and updated notes on section 157A of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to faceless rectification, amendments and issuance of notice or intimation.

Chapter XIV (Sections 139 to 158) of the Income Tax Act 1961 deals with the provisions related to procedure for assessment. Section 157A of IT Act 1961 provides for faceless rectification, amendments and issuance of notice or intimation.

Recently, we have discussed in detail section 157 (Intimation of loss) of IT Act 1961. Today, we learn the provisions of section 157A of Income-tax Act 1961. The amended provision of section 157A is effective for financial year 2022-23 relevant to the assessment year 2023-24.

In this article, you will learn detail of the provisions of section 157A of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962 as provided by Ministry of Law and Justice, Government of India.

Section 157A was inserted w.e.f. 01.11.2020 by the Taxation and Other Laws (Relaxation and Amendment of Certain Provisions) Act, 2020. Recommended Read:

  1. Faceless Appeal Scheme 2020 and Directions.
  2. What is Faceless Assessment scheme? Complete Detail.
  3. Section 142B of Income Tax Act: Faceless Inquiry or Valuation.
  4. Section 144B of Income Tax Act: Faceless Assessment.

Section-157A: Faceless Rectification, Amendments and Issuance of Notice or Intimation

Section 157A(1) of Income Tax Act

The Central Government may make a scheme, by notification in the Official Gazette, for the purposes of rectification of any mistake apparent from record under section 154 or other amendments under section 155 or issue of notice of demand under section 156, or intimation of loss under section 157, so as to impart greater efficiency, transparency and accountability by—

  • (a) eliminating the interface between the income-tax authority and the assessee or any other person to the extent technologically feasible;
  • (b) optimising utilisation of the resources through economies of scale and functional specialisation;
  • (c) introducing a team-based rectification of mistakes, amendment of orders, issuance of notice of demand or intimation of loss, with dynamic jurisdiction.

Section 157A(2) of Income Tax Act

The Central Government may, for the purpose of giving effect to the scheme made under sub-section (1), by notification in the Official Gazette, direct that any of the provisions of this Act shall not apply or shall apply with such exceptions, modifications and adaptations as may be specified in the notification:

Provided that no direction shall be issued after the 31st day of March, 2022.

Section 157A(3) of Income Tax Act

Every notification issued under sub-section (1) and sub-section (2) shall, as soon as may be after the notification is issued, be laid before each House of Parliament.


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