Section 317
Section 317: assessment of persons leaving India
Section 317 is an anti-evasion provision: if the tax department believes an individual is about to leave India for good during the current tax year (or shortly after it ends), it can immediately bring their income for that year - up to the expected departure date - to tax, rather than waiting for the normal assessment cycle.
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.
When this section is triggered
Irrespective of section 4, where it appears to the Assessing Officer that an individual may leave India during the current tax year, or shortly after it ends, with no present intention of returning, that individual's total income for the period from the first day of the current tax year up to the probable date of departure (the "specified period") is chargeable to tax in that current tax year.
How the tax is worked out
The total income of each completed tax year, or part of a tax year, within the specified period is chargeable to tax at the rate(s) in force for that tax year, with separate assessments for each such completed year or part-year.
Where income for the specified period (or part of it) cannot be readily determined under the Act's usual rules, the Assessing Officer may estimate it.
Notice requiring a return
For making an assessment under this section, the Assessing Officer may serve a notice on the individual requiring, within a period of not less than seven days as specified in the notice, a return (in the same form and verified in the same manner as a section 268(1) return) setting out: total income for each completed tax year within the specified period; and estimated total income for any part-year within the specified period. Such a notice is treated, so far as may be and subject to Section 317, as if it were a notice under section 268(1).
Irrespective of section 268(1) or 280, where Section 317(1) applies, the Assessing Officer may also issue a notice under section 268(1) or 280 requiring a return for tax chargeable under any other provision of the Act, within a period of not less than seven days as the Assessing Officer thinks proper.
This is additional tax, not a substitute
Tax chargeable under Section 317 is in addition to any tax chargeable under the Act's other provisions.
Frequently asked questions
Can the tax department tax someone's income before the tax year normally ends?
Yes, under Section 317, if it appears an individual may leave India during the current tax year (or shortly after) with no present intention of returning - their income up to the probable date of departure can be brought to tax in that current tax year itself.
How much notice does the person get to file a return in this situation?
The notice under Section 317(4) must give the individual at least seven days to furnish the return, in the same form and manner as a normal section 268(1) return.
Does this replace the person's normal tax assessment?
No - Section 317(6) makes clear that tax charged under this section is in addition to any tax chargeable under any other provision of the Act.
Related sections
Want this applied to your actual filing, not just explained?
Get help responding to a departure-related tax noticeLast updated 9 September 2026