Section 285
Section 285: other provisions relating to income escaping assessment
Section 285 rounds off the income-escaping-assessment scheme with two practical rules: which tax rate applies on a reassessment, and how an assessee can get a reassessment proceeding dropped by showing the original assessment was already adequate.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
Rate of tax on reassessment
In an assessment, reassessment or recomputation made under section 279, tax is chargeable at the rate or rates that would have applied had the income not escaped assessment in the first place.
Dropping the proceedings
Proceedings initiated under section 279 must be dropped if the assessee makes a claim, and shows, that:
- the assessee had already been assessed at an amount not lower than what he would rightly be liable for even if the allegedly escaped income had been properly taken into account or the assessment/computation had been properly made; and
- the assessee has not challenged any part of the original assessment order for the relevant tax year under section 356, 357 or 378.
No reopening of matters already concluded
Where an assessee makes a claim under sub-section (2) to have the proceedings dropped, he is not entitled to reopen matters already concluded by an order under section 287, 288, 365(10), 368 or 377.
Frequently asked questions
What tax rate applies when income is reassessed under Section 279?
The rate or rates that would have applied had the income not escaped assessment in the first place - not a special or penal rate.
Can I get a reassessment proceeding against me dropped?
Yes, if you can show you were already assessed at an amount not lower than what you would rightly owe even taking the allegedly escaped income into account, and you have not challenged any part of the original assessment order under section 356, 357 or 378.
Related sections
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Talk to our team about your reassessment caseLast updated 9 September 2026