FAQs on Non-Applicability of Section 271AAB of the Income Tax Act



Quick Summary
The Finance Bill 2025 has introduced significant amendments to Section 271AAB of the Income-tax Act, 1961. This section previously dealt with penalties for searches initiated after December 15, 2016. However, the amendments mean that the penalty under Section 271AAB will no longer apply to searches conducted on or after September 1, 2024. For searches initiated from this date onwards, a 50% penalty under Section 158BFA will be applicable.

Major Changes in Penalty Provisions Under Income-tax Act: Section 271AAB Amended by Finance Bill 2025 Q1. What is Section 271AAB of the Income-tax Act, 1961? Ans. Section 271AAB of the Income-tax Act, 1961 relates to penalty in respect of searches initiated after 15.12.2016. Q.2 What is the amendment brought in section 271AAB of Income-tax Act, 1961 by Finance Bill 2025? Ans. Penalty under section 271AAB is not applicable for searches conducted on or after 01.09.2024 Q3. Is penalty under
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FAQ :

Section 271AAB of the Income-tax Act, 1961, pertains to penalties in cases where searches were initiated after December 15, 2016.

The Finance Bill 2025 amends Section 271AAB so that the penalty provisions under it are not applicable for searches conducted on or after September 1, 2024.

No, the penalty under Section 271AAB is not applicable for searches conducted on or after September 1, 2024.

For searches initiated under section 132 on or after September 1, 2024, a penalty of 50% as per section 158BFA shall be leviable on the assessee.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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