What this means
Section 281 of IT Act 1961 (transfer of assets by assessee during pendency of assessment/appeal proceedings is void against the department to the extent of tax liability; prior permission required from AO for transfer above ₹10 lakh) maps to Section 499 of IT Act 2025. The ₹10 lakh transfer void provision is unchanged. Verify on the income-tax portal before filing.
Change type — Section renumbered
The section number changed when the IT Act 1961 was reorganised into the IT Act 2025. The substance, rates, thresholds, and conditions are preserved. Any reference to the old section number in contracts, certificates, or returns before 1 April 2026 remains valid under the transitional provisions in §536.
Effective date
This change takes effect from 1 April 2026 (Tax Year 2026-27 onwards). For income earned before 1 April 2026, the old Section 281 continues to apply under the transitional provisions of Section 536 of the IT Act 2025. Returns for FY 2025-26 (AY 2026-27) are filed under the IT Act 1961 — old section numbers apply.
Confidence: medium. This mapping is inferred from structural analysis — verify against the official IT Act 2025 text on incometaxindia.gov.in before relying on it.
Frequently asked questions
Where did Section 281 go in the Income Tax Act 2025?▾
Section 281 of the IT Act 1961 maps to 499 in the IT Act 2025, effective 1 April 2026. Section 281 of IT Act 1961 (transfer of assets by assessee during pendency of assessment/appeal proceedings is void against the department to the extent of tax liability; prior permission required from AO for transfer above ₹10 lakh) maps to Section 499 of IT Act 2025. The ₹10 lakh transfer void provision is unchanged. Verify on the income-tax portal before filing.
Does Section 281 still apply for FY 2025-26 (AY 2026-27)?▾
Yes. For income earned in FY 2025-26 (April 2025 to March 2026), the IT Act 1961 continues to apply — including Section 281. The IT Act 2025 (and its new section numbering) applies from Tax Year 2026-27 (income earned on or after 1 April 2026). Verify on the income-tax portal before filing.
What is the new section number for 281 in the IT Act 2025?▾
The new corresponding provision is 499 under the Income Tax Act 2025. Change type: Section renumbered. The section number changed when the IT Act 1961 was reorganised into the IT Act 2025. The substance, rates, thresholds, and conditions are preserved. Any reference to the old section number in contracts, certificates, or returns before 1 April 2026 remains valid under the transitional provisions in §536. Verify on the income-tax portal before filing.