Amended and updated notes on section 113 of Income Tax Act 1961 as amended by the Finance Act 2022 and Income-tax Rules, 1962. Detail discussion on provisions and rules related to tax in the case of block assessment of search cases.
Chapter XII (Sections 110 to 115BBG) of the Income Tax Act 1961 deals with the provisions related to determination of tax in certain special cases. Section 113 of IT Act 1961-2023 provides for tax in the case of block assessment of search cases.
Recently, we have discussed in detail section 112A (Tax on long-term capital gains in certain cases) of IT Act 1961. Today, we learn the provisions of section 113 of Income-tax Act 1961. The amended provision of section 113 is effective for financial year 2022-23 relevant to the assessment year 2023-24.
In this article, you will learn detail of the provisions of section 113 of the Income Tax Act, 1961 Bare Act read with the Income-tax Rules, 1962, regulations, notifications, circulars, orders and Press Release by CBDT, Income Tax Department and the Ministry of Law and Justice, Government of India.
Section-113: Tax in the case of block assessment of search cases
The total undisclosed income of the block period, determined under section 158BC, shall be chargeable to tax at the rate of sixty per cent:
Provided that the tax chargeable under this section shall be increased by a surcharge, if any, levied by any Central Act and applicable in the assessment year relevant to the previous year in which the search is initiated under section 132 or the requisition is made under section 132A.