Income-tax Act, 1961Section 144C
- Draft order to eligible assessees (TP cases, foreign companies)
- Objections to DRP within 30 days
- DRP directions binding on AO
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 144C
Returns & assessmentSection 144C → Section 275
Dispute Resolution Panel (DRP) for eligible assessees
Section 144C of the old Income-tax Act, 1961 · new section 275 under the Income-tax Act, 2025
New reference Section 275 (144A → 272)
Income-tax Act, 2025Section 275 (144A → 272)
- DRP procedure now section 275
- JCIT directions (old 144A): section 272
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Renumbered. The Finance Act 2026 also provides that, where the draft order is issued within the section 286 time limit, the final order timelines run independently of section 286 (275(4), 275(14)).
Practice notes
- Interest on penalty demands in DRP cases does not run until the order under section 363 (section 411(3)(b)).
Frequently asked
What is section 144C called in the new Income Tax Act 2025?
Section 275 (Dispute Resolution Panel).
What is section 144C called in the new Income-tax Act, 2025?
Section 144C of the Income-tax Act, 1961 corresponds to Section 275 (144A → 272) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 144C under the new Income Tax Act?
Renumbered. The Finance Act 2026 also provides that, where the draft order is issued within the section 286 time limit, the final order timelines run independently of section 286 (275(4), 275(14)).
Is section 144C still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 144C of the 1961 Act. Section 275 (144A → 272) of the 2025 Act applies from tax year 2026-27.