New Provision
Section 276, IT Act 2025
Replaces (IT Act 1961)
145
Chapter
Chapter XV — Assessment
Effective From
1 April 2026
Statutory Text — Section 276
ncome chargeable under the head “Profits and gains of business or profession” or “Income from other sources” shall, subject to the provisions of sub-section (2), be computed as per either cash or mercantile system of accounting regularly employed by the assessee. (2) The Central Government may notify income computation and disclosure standards to be followed by any class of assessees or in respect of any class of income. (3) The Assessing Officer may make an assessment in the manner provided in section 271, where–– (a) he is not satisfied about the correctness or completeness of the accounts of the assessee; or (b) the method of accounting provided in sub-section (1) has not been regularly followed by the assessee; or (c) income has not been computed as per the standards notified under sub-section (2).
Shahi & Co. — Our Understanding
This section falls under Chapter XV which governs the assessment process — how the Income Tax Department examines, processes, and finalises your tax return.
Practical Note: Understanding assessment provisions is important for responding to notices and maintaining proper records. The faceless assessment scheme (Section 273) continues under the new Act, requiring all responses through the online portal.
Shahi & Co., Chartered Accountants
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Disclaimer: This is a reproduction of Section 276 of the Income Tax Act, 2025 (No. 30 of 2025) as published in the Official Gazette of India (CG-DL-E-22082025-265620) for informational and reference purposes only. Shahi & Co., Chartered Accountants makes no warranty as to completeness or accuracy. For the official authenticated text refer to
egazette.gov.in or
incometaxindia.gov.in. This does not constitute legal or tax advice.