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 Direct Tax Code 2025 (Income-tax Act, 2025), effective 1st April 2026. Status: Retained.
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 does Section 281B of the Income Tax Act 1961 deal with?
Section 281B (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.
What is the new section number for Section 281B under the Direct Tax Code 2025?
Section 281B of the ITA 1961 maps to Section 402 of the Direct Tax Code 2025 (Income-tax Act, 2025), effective from 1st April 2026.
What is the status of Section 281B under the new tax code?
Section 281B is marked as "Retained" with status "Active". Impact: Very High - Can paralyze business cash flow during a raid/scrutiny.
What are the key changes to Section 281B under DTC 2025?
Can be lifted if the taxpayer provides a Bank Guarantee of an equivalent amount.
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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