Section 170 → Section 185
Succession to business otherwise than on death
Quick Answer
Section 170 of the Income Tax Act, 1961 (Succession to business otherwise than on death) corresponds to Section 185 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 170
Section 170 of the 1961 Act sets out the rules on succession to business otherwise than on death. Tax liability when one person succeeds another in business (M&A, Takeovers).
Under the Income-tax Act, 2025 (effective 1st April 2026), Section 170 is retained and renumbered as Section 185 of the Income-tax Act, 2025. Retained. Predecessor is liable for income up to date of succession; Successor thereafter.
The transition impact on Section 170 is assessed as High. Crucial for M&A tax due diligence.
Sec 170
Provision Summary
Tax liability when one person succeeds another in business (M&A, Takeovers).
Sec 185
Provision Summary
Retained. Predecessor is liable for income up to date of succession; Successor thereafter.
Key Changes & Highlights
- Clarified that assessments on the predecessor during the pendency of business reorganization are valid on the successor.
Related Sections
Frequently Asked Questions
Which subject does Section 170 of the 1961 Act cover?
Section 170 of the Income Tax Act, 1961 covers succession to business otherwise than on death. Tax liability when one person succeeds another in business (M&A, Takeovers).
What is the new section number for Section 170 under the Income-tax Act, 2025?
Section 170 of the Income Tax Act, 1961 maps to Section 185 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Predecessor is liable for income up to date of succession; Successor thereafter.
How does the Income-tax Act, 2025 affect Section 170 in practice?
The transition impact for Section 170 is rated High. Crucial for M&A tax due diligence.
What is new about Section 170 under the Income-tax Act, 2025?
Clarified that assessments on the predecessor during the pendency of business reorganization are valid on the successor. These points are specific to Section 170 (Succession to business otherwise than on death).
Disclaimer: This mapping of Section 170 (Succession to business otherwise than on death) to Section 185 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 170 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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