Section 175 of Income Tax Act for AY 2023-24

Section 175 of Income Tax Act 1961 amended by Finance Act and IT Rules 1962. Assessment of persons likely to transfer property to avoid tax.

Amended and updated notes on section 175 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 persons likely to transfer property to avoid tax.

Chapter XV (Sections 159 to 180A) of the Income Tax Act 1961 deals with the provisions related to liability in special cases. Section 175 of IT Act 1961 provides for Assessment of persons likely to transfer property to avoid tax.

Recently, we have discussed in detail section 174A (Assessment of association of persons or body of individuals or artificial juridical person formed for a particular event or purpose) of IT Act 1961. Today, we learn the provisions of section 175 of Income-tax Act 1961. The amended provision of section 175 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 175 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-175: Assessment of persons likely to transfer property to avoid tax

Notwithstanding anything contained in section 4, if it appears to the Assessing Officer during any current assessment year that any person is likely to charge, sell, transfer, dispose of or otherwise part with any of his assets with a view to avoiding payment of any liability under the provisions of this Act, the total income of such person for the period from the expiry of the previous year for that assessment year to the date when the Assessing Officer commences proceedings under this section shall be chargeable to tax in that assessment year, and the provisions of sub-sections (2), (3), (4), (5) and (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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