Section 319
Section 319: assessment of persons likely to transfer property to avoid tax
Section 319 is another accelerated-assessment anti-evasion provision, aimed at someone who looks like they are about to charge, sell, transfer, dispose of, or otherwise part with assets specifically to dodge a tax liability. It lets the Assessing Officer bring that person's income to tax immediately, using the same machinery used for persons leaving India.
When this section is triggered
Irrespective of section 4, where it appears to the Assessing Officer during any current tax year that a 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, that person's total income for the period from the first day of the current tax year up to the date the Assessing Officer commences proceedings under this section is chargeable to tax in that current tax year.
The same procedural rules as for persons leaving India
Section 317(2) to (6) - covering how tax on completed years/part-years is worked out, income estimation, the notice requiring a return, and the rule that this tax is in addition to tax under other provisions - apply, so far as may be, to proceedings against such a person, in the same way they apply to persons leaving India.
Frequently asked questions
What triggers an assessment under Section 319?
When it appears to the Assessing Officer, during the current tax year, that a person is likely to charge, sell, transfer, dispose of, or otherwise part with any of his assets with a view to avoiding payment of a tax liability under the Act.
Up to what date is the person's income taxed under Section 319?
From the first day of the current tax year up to the date the Assessing Officer commences proceedings under Section 319 - this period's income is brought to tax in that same current tax year.
Is the machinery for this assessment the same as for someone leaving India?
Yes - Section 319(2) applies section 317(2) to (6), the same procedural provisions used for assessing persons leaving India, so far as may be.
Related sections
Want this applied to your actual filing, not just explained?
Get help responding to an asset-transfer related tax noticeLast updated 9 September 2026