Section 281B → Section 402
Provisional attachment to protect revenue
Quick Answer
Section 281B of the Income Tax Act, 1961 (Provisional attachment to protect revenue) corresponds to Section 402 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 281B
Under the Income Tax Act, 1961, Section 281B governs provisional attachment to protect revenue. Allows the AO to provisionally attach a taxpayer's bank account or assets during the pendency of a high-value assessment.
From 1st April 2026, the same subject sits at Section 402 of the Income-tax Act, 2025 — retained and renumbered as Section 402 of the Income-tax Act, 2025. Retained. Valid for 6 months, extendable up to 2 years.
For Section 281B, the practical impact is rated Very High. Can paralyze business cash flow during a raid/scrutiny.
Sec 281B
Provision Summary
Allows the AO to provisionally attach a taxpayer's bank account or assets during the pendency of a high-value assessment.
Sec 402
Provision Summary
Retained. Valid for 6 months, extendable up to 2 years.
Key Changes & Highlights
- Can be lifted if the taxpayer provides a Bank Guarantee of an equivalent amount.
Related Sections
Frequently Asked Questions
What is Section 281B of the Income Tax Act, 1961 about?
Section 281B of the Income Tax Act, 1961 covers provisional attachment to protect revenue. Allows the AO to provisionally attach a taxpayer's bank account or assets during the pendency of a high-value assessment.
Which section replaces Section 281B in the Income-tax Act, 2025?
Section 281B of the Income Tax Act, 1961 maps to Section 402 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Valid for 6 months, extendable up to 2 years.
What is the impact of the change to Section 281B under the new tax code?
The transition impact for Section 281B is rated Very High. Can paralyze business cash flow during a raid/scrutiny.
What should I watch out for when Section 281B moves to the 2025 code?
Can be lifted if the taxpayer provides a Bank Guarantee of an equivalent amount. These points are specific to Section 281B (Provisional attachment to protect revenue).
Disclaimer: This mapping of Section 281B (Provisional attachment to protect revenue) to Section 402 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 281B is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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