Section 144 → Section 162
Best Judgment Assessment
Quick Answer
Section 144 of the Income Tax Act, 1961 (Best Judgment Assessment) corresponds to Section 162 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 144
Provision Summary
The AO assesses the tax to the 'best of his judgment' if the taxpayer fails to file a return or comply with a 142(1) notice.
Sec 162
Provision Summary
Retained. This is an 'Ex-parte' assessment where the department uses its own data (AIS) to compute tax if you don't cooperate.
Key Changes & Highlights
- Mandatory 'Show Cause Notice' must be issued before passing a Best Judgment order.
Related Sections
Frequently Asked Questions
What does Section 144 of the Income Tax Act 1961 deal with?
Section 144 (Best Judgment Assessment) The AO assesses the tax to the 'best of his judgment' if the taxpayer fails to file a return or comply with a 142(1) notice.
What is the new section number for Section 144 under the Direct Tax Code 2025?
Section 144 of the ITA 1961 maps to Section 162 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 144 under the new tax code?
Section 144 is marked as "Retained" with status "Active". Impact: Very High - Extremely risky for non-compliant taxpayers.
What are the key changes to Section 144 under DTC 2025?
Mandatory 'Show Cause Notice' must be issued before passing a Best Judgment order.
Disclaimer: This page is for educational and reference purposes only. Section mappings are based on publicly available drafts and circulars. Always consult a qualified Chartered Accountant before filing or making compliance decisions under the Direct Tax Code 2025.
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