Section 174A of Income Tax Act for AY 2023-24

Section 174A of Income Tax Act 1961 and Income-tax Rules, 1962. Assessment of AOP or BOI or AJP formed for a particular event or purpose.

Amended and updated notes on section 174A 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 Assessment of association of persons or body of individuals or artificial juridical person formed for a particular event or purpose.

Chapter XV (Sections 159 to 180A) of the Income Tax Act 1961 deals with the provisions related to liability in special cases. Section 174A of IT Act 1961 provides for Assessment of association of persons or body of individuals or artificial juridical person formed for a particular event or purpose.

Recently, we have discussed in detail section 174 (Assessment of persons leaving India) of IT Act 1961. Today, we learn the provisions of section 174A of Income-tax Act 1961. The amended provision of section 174A 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 174A 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-174A: Assessment of association of persons or body of individuals or artificial juridical person formed for a particular event or purpose

Notwithstanding anything contained in section 4, where it appears to the Assessing Officer that any association of persons or a body of individuals or an artificial juridical person, formed or established or incorporated for a particular event or purpose is likely to be dissolved in the assessment year in which such association of persons or a body of individuals or an artificial juridical person was formed or established or incorporated or immediately after such assessment year, the total income of such association or body or juridical person for the period from the expiry of the previous year for that assessment year up to the date of its dissolution shall be chargeable to tax in that assessment year, and the provisions of sub-sections (2) to (6) of section 174 shall, so far as may be, apply to any proceedings in the case of any such person as they apply in the case of persons leaving India.


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