Sections 317-319 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Ordinarily income is taxed after the tax year ends. Sections 317 to 319 let the Assessing Officer bring forward the assessment in three situations where waiting could put the revenue at risk: an individual who may leave India with no present intention of returning, an association, body or artificial juridical person formed for a particular event or purpose that is likely to dissolve, and a person likely to part with assets to avoid paying tax. This article reads the three sections as per the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026.
If it appears to the Assessing Officer that an individual may leave India with no present intention of returning, the income from the first day of the current tax year up to the probable date of departure is chargeable in that year, with separate assessments and a return notice of not less than seven days. The same machinery applies to event-based bodies likely to dissolve, and to persons likely to transfer assets to avoid tax. The tax is in addition to tax under other provisions.
Section 317: persons leaving India
Sub-section (1): the trigger and the specified period
Irrespective of anything in section 4, when it appears to the Assessing Officer that any individual may leave India during the current tax year or shortly after its expiry, with no present intention of returning, the total income of the individual for the period from the first day of that current tax year up to the probable date of departure (the "specified period") is chargeable to tax in that current tax year. Section 4 is the charging section; see our article on section 4.
Sub-sections (2) and (3): rates, separate assessments, estimates
- (2) The total income of each completed tax year, or part of a tax year, included in the specified period is chargeable at the rate or rates in force in that tax year, and separate assessments are made for each completed tax year or part.
- (3) The Assessing Officer may estimate the income for the specified period, or any part, where it cannot be readily determined in the manner provided in the Act.
Sub-section (4): the notice and the return
For an assessment under sub-section (1), the Assessing Officer may serve a notice on the individual requiring him to furnish, within such time (not less than seven days) as the notice specifies, a return in the same form and verified in the same manner as a return under section 268(1), setting forth his (a) total income for each completed tax year comprised in the specified period, and (b) estimated total income for any part of a tax year comprised in the specified period. The Act's provisions apply so far as may be, as if the notice were one under section 268(1). For the inquiry before assessment, see our article on section 268. With a minimum window this short, a notice of this kind is a matter for prompt advice; our legal dispute resolution team can help.
Sub-sections (5) and (6)
- (5) Irrespective of sections 268(1) or 280, where sub-section (1) applies, the Assessing Officer may issue any notice under section 268(1) or 280 requiring the furnishing of a return by the individual for any tax chargeable under any other provision, within such period, not less than seven days, as he thinks proper.
- (6) The tax chargeable under section 317 is in addition to the tax, if any, chargeable under any other provision of the Act.
Section 318: event-based bodies
Sub-section (1)
Irrespective of section 4, where it appears to the Assessing Officer that any association of persons, body of individuals or artificial juridical person, formed, established or incorporated for a particular event or purpose in a tax year, is likely to be dissolved in the same year or immediately after it, the total income of the body for the period from the first day of that tax year up to the date of its dissolution is chargeable to tax in that tax year.
Sub-section (2)
Sections 317(2) to (6) apply, so far as may be, to proceedings against such a body as they apply to persons leaving India. That brings in the rate rule, separate assessments, the power to estimate, the return notice of not less than seven days, the power to issue notices under section 268(1) or 280, and the "in addition" rule.
Section 319: persons likely to transfer property to avoid tax
Sub-section (1)
Irrespective of 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 Act, the total income of that person for the period from the first day of the current tax year up to the date when the Assessing Officer commences proceedings under section 319 is chargeable to tax in the current tax year.
Sub-section (2)
Sections 317(2) to (6) apply so far as may be, as they apply to persons leaving India.
The three sections side by side
| Feature | Section 317 | Section 318 | Section 319 |
|---|---|---|---|
| Who | An individual | An AOP, BOI or artificial juridical person formed for a particular event or purpose | Any person |
| Trigger | May leave India during the current tax year or shortly after, with no present intention of returning | Likely to be dissolved in the same tax year or immediately after | Likely to part with assets with a view to avoiding payment of a liability under the Act |
| Period brought into charge | First day of the current tax year to the probable date of departure | First day of the tax year to the date of dissolution | First day of the current tax year to the date the Assessing Officer commences proceedings |
| Machinery | Sub-sections (2) to (6) of section 317 | Section 317(2) to (6) apply | Section 317(2) to (6) apply |
The Act says each of these applies "irrespective of anything contained in section 4"; the power is exercised only when it appears to the Assessing Officer that the stated risk exists.
A worked example
Names, dates and amounts are assumed.
Section 317. Mr. Dev Kapoor, an individual, tells his employer he is moving abroad permanently in the following February. It appears to the Assessing Officer that he may leave India shortly after the current tax year ends with no present intention of returning, and that his probable date of departure is 15 February.
- The specified period runs from 1 April of the current tax year to 15 February. Mr. Kapoor's total income for that period is chargeable to tax in the current tax year (sub-section (1)).
- A notice requires a return within a time stated in the notice, which must be not less than seven days (sub-section (4)). Suppose the notice gives ten days; that is permitted.
- Where the Assessing Officer cannot readily determine part of the income, he may estimate it (sub-section (3)).
- The tax is in addition to any tax chargeable under other provisions (sub-section (6)).
Section 318. A committee formed in April to run a festival is expected to wind up in the same year. The Assessing Officer may assess its total income from 1 April of that tax year up to the date of dissolution in that year (sub-section (1)), using the machinery of section 317(2) to (6).
Section 319. In September, Mr. Hari Nair, who has an outstanding liability, begins selling his properties. It appears to the Assessing Officer that he is parting with assets to avoid the liability. The Assessing Officer commences proceedings on 20 October. Mr. Nair's total income from 1 April of the current tax year to 20 October is chargeable to tax in the current tax year.
Need help with an early assessment?
A notice under these sections can arrive well before the ordinary due date for the year, with a response window of seven days or more. If you have received one, or if you are planning to leave India or wind up a body, our team can help you prepare the return and the facts. See our legal dispute resolution service.
Key takeaways
- Section 317 lets the Assessing Officer assess an individual's income from the start of the current tax year to the probable date of departure, if he may leave India with no present intention of returning.
- The notice for a return must give not less than seven days.
- Separate assessments are made for each completed tax year or part, at the rates in force in each; income can be estimated where it cannot be readily determined.
- Section 318 applies the same machinery to a body formed for a particular event or purpose that is likely to dissolve.
- Section 319 applies it to a person likely to part with assets with a view to avoiding payment of a liability, up to the date proceedings begin.
- The tax is in addition to tax under any other provision.
Read next
- Sections 320 to 322: discontinued business, dissolved association and company in liquidation
- Section 316: shipping business of non-residents
- Section 4: the charging section
- Chapter XVII: special provisions relating to certain persons
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.