Section 175 - Assessment of persons likely to transfer property to avoid tax

Section 175 allows immediate tax assessment when individuals may transfer assets to avoid tax liability

Section 175 of the Income Tax Act, 1961 empowers the Assessing Officer to assess individuals who appear likely to transfer, sell, or dispose of assets to avoid tax liability. When such intent is suspected during an assessment year, the person's total income from the end of the previous year until proceedings commence becomes chargeable to tax in that assessment year. The provision applies similar procedures as those used for persons leaving India under section 174, allowing immediate assessment to prevent tax evasion through asset alienation.