Before reopening an earlier tax year, the Assessing Officer must follow the procedure in Section 281 of the Income-tax Act, 2025, which includes giving you a chance to explain. If the officer decides to proceed, a notice under Section 280 follows, and the reassessment is made under Section 279. These replace Sections 148A, 148 and 147 of the 1961 Act.
Income Tax, Income-tax Act 2025, across India
Income-tax Act, 2025
This page is for notices and orders under the Income-tax Act, 2025. If yours names the Income-tax Act, 1961, see Reassessment Notice u/s 148A / 148 (1961 Act). Not sure which Act applies? The heading of the notice names it, or call us.
What this notice means
Reassessment means the department believes income chargeable to tax has escaped assessment. The Section 281 stage is the most important opportunity to stop the reopening. A reply that deals with the facts, the time limit and the approval required can lead to the proceedings being dropped.
Common reasons it is issued
- Information from the annual information statement, TDS or financial transaction reports
- Cash deposits, property or share transactions flagged by the system
- Information from a search, survey or another taxpayer’s case
- Audit objections on an earlier assessment
Time limit to respond
Documents to keep ready
- The show cause notice with the information relied upon
- Return, computation and any assessment order of that year
- Bank statements and documents explaining the flagged transaction
- Proof of the source of any deposit or investment
How we handle it
- Check the Act applied, the time limit and the approval obtained
- Ask for any material relied upon that was not supplied
- File a reply on facts with evidence, and legal objections where available
- After a Section 280 notice, file the return in response and contest the reassessment
- Consider a writ or appeal where the reopening lacks jurisdiction
Points to note
- Do not let the show cause notice go unanswered. It is your strongest protection
- Which Act applies depends on the year being reopened. Old years generally stay under the 1961 Act
- Limitation and approval defects are common. Get them checked
What usually comes next
- Notice to Furnish Information under Section 252 of the Income-tax Act, 2025Information calls that often come first
- First Appeal to the Commissioner (Appeals) under Section 357 of the Income-tax Act, 2025Appealing the reassessment order
- Reassessment Notice u/s 148A / 148Reopening of years under the 1961 Act
Frequently asked questions
Which Act applies to reopening an old year?
Years up to assessment year 2026-27 are generally reopened under the 1961 Act provisions, so the notice will cite Sections 148A and 148. Tax year 2026-27 onwards falls under Sections 279 to 286 of the 2025 Act, with the time limits for notices in Section 282.
Can reassessment be stopped at the show cause stage?
Yes. If the reply shows that no income escaped assessment, or that the notice is time-barred or lacks proper approval, the officer may drop the matter.
Official sources
- Authenticate a notice (DIN check)incometax.gov.inConfirm that a notice or order is genuine before replying
- Income Tax e-Filing portalincometax.gov.inReply to notices under e-Proceedings and file first appeals
- Income Tax Departmentincometaxindia.gov.inActs, rules, circulars and the 1961 to 2025 section utility
Received a notice or an order?
Call us to talk it through. Keep the notice and its response date handy.