Income-tax Act, 1961Section 281B
- AO may provisionally attach property during assessment/reassessment
- 6 months, extendable to 2 years
- Revoked on bank guarantee
Applies to FY 2025-26 (AY 2026-27) and earlier years.
IT Act 1961 → 2025 / Section 281B
Search & surveySection 281B → Section 500
Provisional attachment of property to protect revenue
Section 281B of the old Income-tax Act, 1961 · new section 500 under the Income-tax Act, 2025
New reference Section 500 (281 → 499)
Income-tax Act, 2025Section 500 (281 → 499)
- Same, section 500
- Also during 444 penalty proceedings above ₹2 crore
- 6 months, extendable (total 2 years or 60 days after the order)
- Bank guarantee route retained
Applies from tax year 2026-27 (from 1 April 2026).
What changed
Renumbered.
Practice notes
- Transfers to defraud revenue are void under section 499 (old 281).
Frequently asked
What is section 281B called in the new Income Tax Act 2025?
Section 500: provisional attachment for 6 months, extendable up to 2 years; revoked on a bank guarantee.
What is section 281B called in the new Income-tax Act, 2025?
Section 281B of the Income-tax Act, 1961 corresponds to Section 500 (281 → 499) of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).
What changed in section 281B under the new Income Tax Act?
Renumbered.
Is section 281B still applicable for FY 2025-26?
Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 281B of the 1961 Act. Section 500 (281 → 499) of the 2025 Act applies from tax year 2026-27.