Section 152 of the Income-tax Act, 1961: Other Provisions for Reassessment
Section 152 addresses the applicable tax rate when escaped income is reassessed, the circumstances in which an assessee may request that reassessment proceedings be dropped, and transitional rules introduced in 2024.
Updated: 26 October 2026 | India
What does Section 152 provide?
Section 152 is titled "Other provisions" and forms part of the reassessment framework under Chapter XIV of the Income-tax Act, 1961. It must be read together with Section 147 (income escaping assessment), Section 148 (notice), Section 149 (time limit), and Section 151 (sanction).
Section 152(1): Tax rates in reassessment
When an assessment, reassessment or recomputation is made under Section 147, the income is taxed at the rate or rates that would have applied if the income had been correctly assessed originally. A later reassessment does not, by itself, replace the relevant year's tax rates with rates for the year in which reassessment occurs.
Section 152(2): When reassessment proceedings may be dropped
Where an assessment is reopened under Section 147, an assessee who has not challenged any part of the original assessment order for that year under Sections 246 to 248 or Section 264 may claim that the reassessment proceedings should be dropped. The assessee must demonstrate that the amount originally assessed was not lower than the amount correctly assessable even after accounting for the allegedly escaped income or correcting the computation.
This is a conditional statutory protection, not an automatic cancellation of a reassessment notice. The proviso also prevents the assessee from reopening matters already concluded by orders under Sections 154, 155, 260, 262 or 263 through this mechanism.
Sections 152(3) and 152(4): Transitional rules from 1 September 2024
The Finance (No. 2) Act, 2024 inserted subsections (3) and (4) with effect from 1 September 2024. These preserve the earlier version of Sections 147 to 151 for specified proceedings:
| Provision | Cases covered | Effect |
|---|---|---|
| Section 152(3) | Search under Section 132, requisition under Section 132A, or qualifying survey under Section 133A initiated on or after 1 April 2021 but before 1 September 2024; excludes surveys under Section 133A(2A). | Sections 147 to 151 apply as they stood immediately before the Finance (No. 2) Act, 2024 commenced. |
| Section 152(4) | Other cases in which a Section 148 notice was issued or an order under the then Section 148A(d) was passed before 1 September 2024. | The assessment, reassessment or recomputation is governed by the pre-amendment version of Sections 147 to 151. |
The date and nature of the initiating action therefore matter when deciding which procedural and limitation rules govern a historical reassessment.
Section 285 of the Income-tax Act, 2025
The new Act places corresponding "Other provisions" in Section 285, within the reassessment framework of Sections 279 to 286. It preserves the principle of applying the tax rates that would have applied had the income not escaped assessment, and provides a mechanism for dropping proceedings where the statutory conditions are satisfied.
Under Section 285(2), the taxpayer must show both that the original assessed amount was not lower than the correct amount after considering the alleged escaped income, and that no part of the original assessment order was challenged under the specified appeal or revision provisions. Section 285(3) protects matters already concluded under the specified provisions from being reopened through that claim.
The Income Tax Department confirms that reassessment for tax year 2026-27 and later years follows the 2025 Act, while earlier years remain subject to the saved 1961 Act provisions. Refer to official reassessment FAQs for transition guidance.
Practical illustration
Suppose a reassessment for an earlier assessment year identifies income that was allegedly omitted from the original computation. The Assessing Officer must apply the tax rates legally applicable to that earlier year, not simply the rates prevailing when the reassessment order is made. If the taxpayer seeks to have proceedings dropped under Section 152(2), the taxpayer must establish the statutory conditions and consider whether any part of the original order was already appealed or revised.
Whether proceedings can lawfully continue also depends on notice limitation, sanction, procedural compliance and any applicable transitional rule. Section 152 should not be read as independently authorising reopening.
Official legislation and guidance
- Income Tax Department - Section 152, Income-tax Act, 1961 (including 2024 amendments)
- Income Tax Department - Income-tax Act, 2025 and comparison resources
- Income Tax Department - Reassessment proceedings FAQs
- Income Tax Department - Repeal and savings FAQs
This article is general legal information. For a particular notice or reassessment, check the applicable statutory text, amendments and judicial decisions for the relevant year.