Amended and updated notes on section 166 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 Direct assessment or recovery not barred.
Recommended read: Corresponding Section 304 of the Income Tax Act 2025.
Chapter XV (Sections 159 to 180A) of the Income Tax Act 1961 deals with the provisions related to liability in special cases. Section 166 of IT Act 1961 provides for Direct assessment or recovery not barred.
Recently, we have discussed in detail section 165 (Case where part of trust income is chargeable) of IT Act 1961. Today, we learn the provisions of section 166 of Income-tax Act 1961. The amended provision of section 166 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 166 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-166: Direct assessment or recovery not barred
Nothing in the foregoing sections in this Chapter shall prevent either the direct assessment of the person on whose behalf or for whose benefit income therein referred to is receivable, or the recovery from such person of the tax payable in respect of such income.
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