Section 281 → Section 401
Certain transfers to be void
Quick Answer
Section 281 of the Income Tax Act, 1961 (Certain transfers to be void) corresponds to Section 401 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
Sec 281
Provision Summary
If a taxpayer sells an asset while a tax proceeding is pending, the sale is void unless done with the department's permission.
Sec 401
Provision Summary
Retained. Protects the government's right to recover tax from the assets of the assessee.
Key Changes & Highlights
- Does not apply if the asset is transferred for adequate consideration without notice of pendency.
Frequently Asked Questions
What does Section 281 of the Income Tax Act 1961 deal with?
Section 281 (Certain transfers to be void) If a taxpayer sells an asset while a tax proceeding is pending, the sale is void unless done with the department's permission.
What is the new section number for Section 281 under the Direct Tax Code 2025?
Section 281 of the ITA 1961 maps to Section 401 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 281 under the new tax code?
Section 281 is marked as "Retained" with status "Active". Impact: High - Crucial for property buyers to check 'Tax Clearance' of the seller.
What are the key changes to Section 281 under DTC 2025?
Does not apply if the asset is transferred for adequate consideration without notice of pendency.
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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