§ 319
Chapter XVII — Special Provisions Relating To Certain Persons

Assessment of persons likely to transfer property to avoid tax

Income-tax Act, 2025

If the Assessing Officer believes that during the current tax year a person may dispose of assets to evade tax, the person's total income from the start of the year up to the date the officer initiates proceedings is taxable for that year.

The rules for such proceedings follow the provisions applicable to persons leaving India under section 317(2)‑(6).

📜 Official text of the section +
319. (1) Irrespective of anything contained in section 4, where it appears to the Assessing Officer during any current tax year that any person is likely to charge, sell, transfer, dispose of or otherwise part with any of his assets with a view to avoiding payment of any liability under the provisions of this Act, the total income of such person for the period beginning from the first day of that current tax year up to the date when the Assessing Officer commences proceedings under this section shall be chargeable to tax in the current tax year. (2) For the purpose of sub-section (1), the provisions of section 317(2) to (6) shall, so far as may be, apply to any proceedings in the case of any such person as they apply in the case of persons leaving India. 12. —Discontinuance of business, or dissolution Discontinued business.

Plain-language summary — not the official text. Refer to the bare Act and confirm with a professional for your specific case.