Section 147A and the New Reassessment Framework (Budget 2026)

Call CA Tally HelpDesk +91 9205471661, 7428779101

Section 147A and the New Reassessment Framework (Budget 2026)

Introduction

Section 147A fundamentally reshapes how reassessment proceedings are initiated under the Income-tax Act. Budget 2026 strengthens procedural safeguards while expanding data-driven triggers.

What Changed

The Assessing Officer must now follow a structured show-cause process, rely on information flagged through risk-management systems, and provide opportunity of hearing.

Practical Impact

Reassessment will become fewer but more defensible. Casual reopening of past assessments is discouraged.

---

Frequently Asked Questions