Section 271AAB Amended by Finance Bill 2025: Major Changes in Penalty Provisions Under IT Act

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.

Section 271AAB Amended by Finance Bill 2025: Major Changes in Penalty Provisions Under IT Act

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 section 271AAB applicable or searches conducted between 01.09.2024 and 01.04.2025?

Ans. No, penalty under section 271AAB is not applicable for searches conducted on or after 01.09.2024.

Q4. Which penalty is applicable for searches initiated after 01.09.2024?

Ans. Penalty @50% as per section 158BFA shall be leviable on an assessee in whose case search has been initiated under section 132 on or after 01.09.2024.

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