Section 157A empowers the Central Government to make a scheme, by notification, for s. 154 rectification, s. 155 amendments, s. 156 notices of demand and s. 157 intimations of loss. The purpose is greater efficiency, transparency and accountability, by three means: eliminating the interface between the authority and the assessee to the extent technologically feasible; optimising resources through economies of scale and functional specialisation; and team-based work with dynamic jurisdiction.
Under sub-section (2), the Government may direct that any provision of the Act shall not apply, or shall apply with exceptions, modifications and adaptations, to give effect to the scheme. The proviso states: "no direction shall be issued after the 31st day of March, 2022".
Operative consequences
A scheme made under sub-section (1) governs how rectification, amendment, demand and loss intimation are handled.
Directions modifying the Act cannot be issued after 31 March 2022.
Every notification under sub-sections (1) and (2) is laid before each House of Parliament.
Status
Section 157A is operative for AY 2026-27 as a scheme-making power; the power to issue directions under sub-section (2) is time-limited and has lapsed. The Finance Act, 2026 does not amend it.
The 2025 Act has no section confined to these procedures. s. 532 gives a general power to make such schemes for any purpose of the Act. Under s. 532(3), a scheme notified under the 1961 Act may be amended or modified.
The 1961 Act governs AY 2026-27 and earlier assessment years; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject the 2025 Act provision is s. 532.
Function in the statutory architecture
Section 157A empowers the Central Government to make a scheme, by notification, for s. 154 rectification, s. 155 amendments, s. 156 notices of demand and s. 157 intimations of loss. The purpose is greater efficiency, transparency and accountability, by three means: eliminating the interface between the authority and the assessee to the extent technologically feasible; optimising resources through economies of scale and functional specialisation; and team-based work with dynamic jurisdiction.
Under sub-section (2), the Government may direct that any provision of the Act shall not apply, or shall apply with exceptions, modifications and adaptations, to give effect to the scheme. The proviso states: "no direction shall be issued after the 31st day of March, 2022".
Operative consequences
Status
Section 157A is operative for AY 2026-27 as a scheme-making power; the power to issue directions under sub-section (2) is time-limited and has lapsed. The Finance Act, 2026 does not amend it.
The 2025 Act has no section confined to these procedures. s. 532 gives a general power to make such schemes for any purpose of the Act. Under s. 532(3), a scheme notified under the 1961 Act may be amended or modified.
The 1961 Act governs AY 2026-27 and earlier assessment years; the Income-tax Act, 2025 governs tax year 2026-27 onwards. For this subject the 2025 Act provision is s. 532.