Amendment of section 281B

Q: When was Section 111 of the Finance Act enacted?

Section 111 of the Finance Act, cited as Finance Act 2016 111, was enacted on 27 Jun 2016. It is in force as at the date shown on this page.

In force As on 10 Oct 2026

Ministry Finance Enacted 27 Jun 2016

Section 111 of the Finance Act, 2016 deals with amendment of section 281B. Amendment of section 281B. 111. In section 281B of the Income-tax Act, with effect from the 1st day of June, 2016,— (a) | in sub-section (1), the Explanation shall be omitted; The Act was enacted on 27 Jun 2016.

Amendment of section 281B.
111. In section 281B of the Income-tax Act, with effect from the 1st day of June, 2016,—
(a) in sub-section (1), the Explanation shall be omitted;
(b) after sub-section (2), the following sub-sections shall be inserted, namely:—
'(3) Where the assessee furnishes a guarantee from a scheduled bank for an amount not less than the fair market value of the property provisionally attached under sub-section (1), the Assessing Officer shall, by an order in writing, revoke such attachment:
Provided that where the Assessing Officer is satisfied that a guarantee from a scheduled bank for an amount lower than the fair market value of the property is sufficient to protect the interests of the revenue, he may accept such guarantee and revoke the attachment.
(4) The Assessing Officer may, for the purposes of determining the value of the property provisionally attached under sub-section (1), make a reference to the Valuation Officer referred to in section 142A, who shall estimate the fair market value of the property in the manner provided under that section and submit a report of the estimate to the Assessing Officer within a period of thirty days from the date of receipt of such reference.
(5) An order revoking the provisional attachment under sub-section (3) shall be made—
(i) within forty-five days from the date of receipt of the guarantee, where a reference to the Valuation Officer has been made under sub-section (4); or
(ii) within fifteen days from the date of receipt of guarantee in any other case.
(6) Where a notice of demand specifying a sum payable is served upon the assessee and the assessee fails to pay that sum within the time specified in the notice of demand, the Assessing Officer may invoke the guarantee furnished under sub-section (3), wholly or in part, to recover the amount.
(7) The Assessing Officer shall, in the interests of the revenue, invoke the bank guarantee, if the assessee fails to renew the guarantee referred to in sub-section (3), or fails to furnish a new guarantee from a scheduled bank for an equal amount, fifteen days before the expiry of the guarantee referred to in sub-section (3).
(8) The amount realised by invoking the guarantee referred to in sub-section (3) shall be adjusted against the existing demand which is payable by the assessee and the balance amount, if any, shall be deposited in the Personal Deposit Account of the Principal Commissioner or Commissioner in the branch of the Reserve Bank of India or the State Bank of India or of its subsidiaries or any bank as may be appointed by the Reserve Bank of India as its agent under the provisions of sub-section (1) of section 45 of the Reserve Bank of India Act, 1934 (2 of 1934) at the place where the office of the Principal Commissioner or Commissioner is situate.
(9) Where the Assessing Officer is satisfied that the guarantee referred to in sub-section (3) is not required anymore to protect the interests of the revenue, he shall release that guarantee forthwith.
Explanation.—For the purposes of this section, the expression "scheduled bank" shall mean a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934).'.
Section 111, The Finance Act, 2016.

Cross-references

Extracted from the operative text of the enactments themselves. Every destination below exists in our corpus.

This section refers to

Income-tax Act s. 281B Provisional attachment to protect revenue in certain cases

Questions about Section 111

What does Section 111 of the Finance Act deal with?

Section 111 of the Finance Act is headed "Amendment of section 281B". Amendment of section 281B. 111. In section 281B of the Income-tax Act, with effect from the 1st day of June, 2016,— (a) | in sub-section (1), the Explanation shall be omitted;

How do I find court cases under Section 111 of the Finance Act?

In judgments and charge sheets this section is written several ways, and each form finds a different set of orders. These search the full text of every order eCourtsIndia holds, best matches first: Finance Act 2016 111, section 111 Finance Act 2016, section 111 of the Finance Act. Each opens the full list of orders on eCourtsIndia, where it can be narrowed by court, year and outcome.

What should I read with Section 111 of the Finance Act, and has it changed?

Its own text turns on Income-tax Act 281B (Provisional attachment to protect revenue in certain cases), so none of them can safely be read on its own.

When was Section 111 of the Finance Act enacted?

Section 111 of the Finance Act, cited as Finance Act 2016 111, was enacted on 27 Jun 2016. It is in force as at the date shown on this page.

Other sections of this Act

Fourth Schedule. Fourth Schedule21791 words
Eighth Schedule. Eighth Schedule19903 words
First Schedule. First Schedule8145 words
2. Income-tax3742 words
222. Insertion of new Chapter III F2100 words
70. Substitution of new section for section 1531931 words

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(a)		in sub-section (1), the Explanation shall be omitted;
(b)		after sub-section (2), the following sub-sections shall be inserted, namely:—
		'(3) Where the assessee furnishes a guarantee from a scheduled bank for an amount not less than the fair market value of the property provisionally attached under sub-section (1), the Assessing Officer shall, by an order in writing, revoke such attachment:
		Provided that where the Assessing Officer is satisfied that a guarantee from a scheduled bank for an amount lower than the fair market value of the property is sufficient to protect the interests of the revenue, he may accept such guarantee and revoke the attachment.
		(4) The Assessing Officer may, for the purposes of determining the value of the property provisionally attached under sub-section (1), make a reference to the Valuation Officer referred to in section 142A, who shall estimate the fair market value of the property in the manner provided under that section and submit a report of the estimate to the Assessing Officer within a period of thirty days from the date of receipt of such reference.
		(5) An order revoking the provisional attachment under sub-section (3) shall be made—

(i)		within forty-five days from the date of receipt of the guarantee, where a reference to the Valuation Officer has been made under sub-section (4); or
(ii)		within fifteen days from the date of receipt of guarantee in any other case.

		(6) Where a notice of demand specifying a sum payable is served upon the assessee and the assessee fails to pay that sum within the time specified in the notice of demand, the Assessing Officer may invoke the guarantee furnished under sub-section (3), wholly or in part, to recover the amount.
		(7) The Assessing Officer shall, in the interests of the revenue, invoke the bank guarantee, if the assessee fails to renew the guarantee referred to in sub-section (3), or fails to furnish a new guarantee from a scheduled bank for an equal amount, fifteen days before the expiry of the guarantee referred to in sub-section (3).
		(8) The amount realised by invoking the guarantee referred to in sub-section (3) shall be adjusted against the existing demand which is payable by the assessee and the balance amount, if any, shall be deposited in the Personal Deposit Account of the Principal Commissioner or Commissioner in the branch of the Reserve Bank of India or the State Bank of India or of its subsidiaries or any bank as may be appointed by the Reserve Bank of India as its agent under the provisions of sub-section (1) of section 45 of the Reserve Bank of India Act, 1934 (2 of 1934) at the place where the office of the Principal Commissioner or Commissioner is situate.
		(9) Where the Assessing Officer is satisfied that the guarantee referred to in sub-section (3) is not required anymore to protect the interests of the revenue, he shall release that guarantee forthwith.
		Explanation.—For the purposes of this section, the expression "scheduled bank" shall mean a bank included in the Second Schedule to the Reserve Bank of India Act, 1934 (2 of 1934).'.