Section 147A and the New Reassessment Framework (Budget 2026)

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CA. Sagar Singh   |   Published on: 02-02-2026 | 1 min read

Section 147A and the New Reassessment Framework (Budget 2026)

Introduction

Section 147A fundamentally reshapes how reassessment proceedings are initiated under the Income-tax Act. Budget 2026 strengthens procedural safeguards while expanding data-driven triggers.

What Changed

The Assessing Officer must now follow a structured show-cause process, rely on information flagged through risk-management systems, and provide opportunity of hearing.

Practical Impact

Reassessment will become fewer but more defensible. Casual reopening of past assessments is discouraged.


Frequently Asked Questions

Can reassessment be done without notice?

No. Section 147A mandates prior notice and opportunity.

About the Author

Written by CA. Sagar Singh 02-02-2026

CA. Sagar Singh advises MSMEs on accounting accuracy, GST compliance, and internal controls. With exposure to high-volume transaction environments, he writes practical guidance on inventory management, billing discipline, and compliance-ready accounting systems.

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