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 Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
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
What does Section 170 of the Income Tax Act 1961 deal with?
Section 170 (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 Direct Tax Code 2025?
Section 170 of the ITA 1961 maps to Section 185 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 170 under the new tax code?
Section 170 is marked as "Retained" with status "Active". Impact: High - Crucial for M&A tax due diligence.
What are the key changes to Section 170 under DTC 2025?
Clarified that assessments on the predecessor during the pendency of business reorganization are valid on the successor.
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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