Income Tax Act, 2025
Section 115WF: Best judgment assessment.—If any person, being an employer—
115WF. Best judgment assessment.—If any person, being an employer—
(a) fails to make the return required under sub-section (1) of section 115WD and has not made a
return under sub-section (3) or a revised return under sub-section (4) of that section, or
(b) fails to comply with all the terms of a notice issued under sub-section (2) of
section 115WD or fails to comply with a direction issued under sub-section (2A) of section 142, or
(c) having made a return, fails to comply with all the terms of a notice issued under subsection (2) of section 115WE,
the Assessing Officer, after taking into account all relevant material which the Assessing Officer has
gathered, shall, after giving the assessee an opportunity of being heard, make the assessment of the fringe
benefits to the best of his judgment and determine the sum payable by the assessee on the basis of such
assessment:
1. Subs. by Act 14 of 2010, s. 31, for “after the 31st day of March, 2010” (w.e.f. 12010). Earlier substituted by Act 33 of
2009, s. 48 (w.e.f. 12009).
2. Subs. by Act 18 of 2008, s. 28, for “twelve months from the end of the month” (w.e.f. 12008).
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Provided that such opportunity shall be given by the Assessing Officer by serving a notice calling
upon the assessee to show cause, on a date and time to be specified in the notice as to why the assessment
should not be completed to the best of his judgment:
Provided further that it shall not be necessary to give such opportunity in a case where a notice under
sub-section (2) of section 115WD has been issued prior to the making of an assessment under this section.
115WG. Fringe benefits escaping assessment.—If the Assessing Officer has reason to believe that
any fringe benefits chargeable to tax have escaped assessment for any assessment year, he may, subject to
the provisions of section 115WH, 150 and 153, assess or reassess such fringe benefits and also any other
fringe benefits chargeable to tax which have escaped assessment and which come to his notice
subsequently in the course of the proceedings under this section, for the assessment year concerned
(hereafter referred to as the relevant assessment year).
Explanation.—For the purposes of this section, the following shall also be deemed to be cases where
fringe benefits chargeable to tax have escaped assessment, namely:—
(a) where no return of fringe benefits has been furnished by the assessee;
(b) where a return of fringe benefits has been furnished by the assessee but no assessment has
been made and it is noticed by the Assessing Officer that the assessee has understated the value of
fringe benefits in the return;
(c) where an assessment has been made, but the fringe benefits chargeable to tax have been
under-assessed.
115WH. Issue of notice where fringe benefits have escaped assessment.—(1) Before making the
assessment or reassessment under section 115WG, the Assessing Officer shall serve on the assessee a
notice requiring him to furnish within such period as may be specified in the notice, a return of the fringe
benefits in respect of which he is assessable under this Chapter during the previous year corresponding to
the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting
forth such other particulars as may be prescribed, and the provisions of this Chapter shall, so far as may
be, apply accordingly as if such return were a return required to be furnished under section 115WD.
(2) The Assessing Officer shall, before issuing any notice under this section, record his reasons for
doing so.
(3) No notice under sub-section (1) shall be issued for the relevant assessment year after the expiry of
six years from the end of the relevant assessment year.
Explanation.—In determining fringe benefits chargeable to tax which have escaped assessment for
the purposes of this sub-section, the provisions of the Explanation to section 115WG shall apply as they
apply for the purposes of that section.
(4) In a case where an assessment under sub-section (3) of section 115WE or section 115WG has
been made for the relevant assessment year, no notice shall be issued under sub-section (1) by an
Assessing Officer, after the expiry of four years from the end of the relevant assessment year, unless the
1[Principal Chief Commissioner or Chief Commissioner] or 2[Principal Commissioner or Commissioner]
is satisfied, on the reasons recorded by the Assessing Officer, that it is a fit case for the issue of such
notice.
115WI. Payment of fringe benefit tax.—Notwithstanding that the regular assessment in respect of
any fringe benefits is to be made in a later assessment year, the tax on such fringe benefits shall be
payable in advance during any financial year, in accordance with the provisions of section 115WJ, in
respect of the fringe benefits which would be chargeable to tax for the assessment year immediately
following that financial year, such fringe benefits being hereafter in this Chapter referred to as the
“current fringe benefits”.
fails to make the return required under sub-section
of section 115WD and has not made a
return under sub-section
or a revised return under sub-section
of that section, or
fails to comply with all the terms of a notice issued under sub-section
of
section 115WD or fails to comply with a direction issued under sub-section
of section 142, or
having made a return, fails to comply with all the terms of a notice issued under subsection
of section 115WE,
the Assessing Officer, after taking into account all relevant material which the Assessing Officer has
gathered, shall, after giving the assessee an opportunity of being heard, make the assessment of the fringe
benefits to the best of his judgment and determine the sum payable by the assessee on the basis of such
assessment:
1. Subs. by Act 14 of 2010, s. 31, for “after the 31st day of March, 2010” (w.e.f. 12010). Earlier substituted by Act 33 of
2009, s. 48 (w.e.f. 12009).
2. Subs. by Act 18 of 2008, s. 28, for “twelve months from the end of the month” (w.e.f. 12008).
530
Provided that such opportunity shall be given by the Assessing Officer by serving a notice calling
upon the assessee to show cause, on a date and time to be specified in the notice as to why the assessment
should not be completed to the best of his judgment:
Provided further that it shall not be necessary to give such opportunity in a case where a notice under
sub-section
of section 115WD has been issued prior to the making of an assessment under this section.
115WG. Fringe benefits escaping assessment.—If the Assessing Officer has reason to believe that
any fringe benefits chargeable to tax have escaped assessment for any assessment year, he may, subject to
the provisions of section 115WH, 150 and 153, assess or reassess such fringe benefits and also any other
fringe benefits chargeable to tax which have escaped assessment and which come to his notice
subsequently in the course of the proceedings under this section, for the assessment year concerned
(hereafter referred to as the relevant assessment year).
Explanation.—For the purposes of this section, the following shall also be deemed to be cases where
fringe benefits chargeable to tax have escaped assessment, namely:—
where no return of fringe benefits has been furnished by the assessee;
where a return of fringe benefits has been furnished by the assessee but no assessment has
been made and it is noticed by the Assessing Officer that the assessee has understated the value of
fringe benefits in the return;
where an assessment has been made, but the fringe benefits chargeable to tax have been
under-assessed.
115WH. Issue of notice where fringe benefits have escaped assessment.—
Before making the
assessment or reassessment under section 115WG, the Assessing Officer shall serve on the assessee a
notice requiring him to furnish within such period as may be specified in the notice, a return of the fringe
benefits in respect of which he is assessable under this Chapter during the previous year corresponding to
the relevant assessment year, in the prescribed form and verified in the prescribed manner and setting
forth such other particulars as may be prescribed, and the provisions of this Chapter shall, so far as may
be, apply accordingly as if such return were a return required to be furnished under section 115WD.
The Assessing Officer shall, before issuing any notice under this section, record his reasons for
doing so.
No notice under sub-section
shall be issued for the relevant assessment year after the expiry of
six years from the end of the relevant assessment year.
Explanation.—In determining fringe benefits chargeable to tax which have escaped assessment for
the purposes of this sub-section, the provisions of the Explanation to section 115WG shall apply as they
apply for the purposes of that section.
In a case where an assessment under sub-section
of section 115WE or section 115WG has
been made for the relevant assessment year, no notice shall be issued under sub-section
by an
Assessing Officer, after the expiry of four years from the end of the relevant assessment year, unless the
1[Principal Chief Commissioner or Chief Commissioner] or 2[Principal Commissioner or Commissioner]
is satisfied, on the reasons recorded by the Assessing Officer, that it is a fit case for the issue of such
notice.
115WI. Payment of fringe benefit tax.—Notwithstanding that the regular assessment in respect of
any fringe benefits is to be made in a later assessment year, the tax on such fringe benefits shall be
payable in advance during any financial year, in accordance with the provisions of section 115WJ, in
respect of the fringe benefits which would be chargeable to tax for the assessment year immediately
following that financial year, such fringe benefits being hereafter in this Chapter referred to as the
“current fringe benefits”.