Section 270AA of the Income-tax Act, 1961 provides immunity from penalties and prosecution if certain conditions are met. Under the current provisions, an assessee must apply for immunity within one month from the end of the month in which the assessment or reassessment order is received, provided they pay the required tax and interest and have not filed an appeal against the order. Prior to the Finance Bill 2025, the time-limit for processing immunity applications was one month from the date the application was received. However, the Finance Bill 2025 has extended this processing period to three months from the end of the month in which the application is received by the Assessing Officer.
Page Contents
- FAQs Budget 2025: Extending the processing period of Application seeking immunity from penalty and prosecution
- Q.1 What is section 270AA of the Income-tax Act, 1961?
- Q.2 When is the assessee required to apply for immunity under section 270AA of the Income-tax Act, 1961?
- Q.3 What are the prescribed conditions to make an assessee eligible for immunity under section 270AA of the Income-tax Act, 1961?
- Q.4 What is the time-limit for processing application of the assessee under section 270AA prior to Finance Bill 2025?
- Q.5 What is the time-limit for processing application of the assessee under section 270AA in Finance Bill 2025?
FAQs Budget 2025: Extending the processing period of Application seeking immunity from penalty and prosecution
Q.1 What is section 270AA of the Income-tax Act, 1961?
Ans. Section 270AA of the Income-tax Act, 1961 relates to immunity from imposition of penalty or prosecution.
Q.2 When is the assessee required to apply for immunity under section 270AA of the Income-tax Act, 1961?
Ans. As per existing provisions, assessee should apply for immunity within one month from the end of the month in which the assessment or reassessment order has been received by him subject to fulfilment of prescribed conditions.
Q.3 What are the prescribed conditions to make an assessee eligible for immunity under section 270AA of the Income-tax Act, 1961?
Ans. The prescribed conditions are: –
(i) Assessee has paid tax and interest payable as per such order within the period specified in notice of demand; and
(ii) no appeal against such order has been filed.
Q.4 What is the time-limit for processing application of the assessee under section 270AA prior to Finance Bill 2025?
Ans. The time-limit for processing application of the assessee under section 270AA was one month from the end of the month in which application of assessee for immunity was received by the Assessing Officer.
Q.5 What is the time-limit for processing application of the assessee under section 270AA in Finance Bill 2025?
Ans. Vide Finance Bill, 2025, the time-limit for processing application of the assessee under section 270AA has been increased from 1 month to 3 months from the end of the month in which application of assessee for immunity is received by the Assessing Officer.
