Here is a following time limit for issuing different income tax notices and completion of assessment:
Table of Contents
Summary Assessment
Section 143(1) of the Income Tax Act pertains to ‘Summary Assessment. ‘ When the Assessing Officer (AO) finds any discrepancy while examining your returns, a notice will be sent to you under Section 143(1).
Time Limit To Serve Income Tax Notices
There is no time limit to serve notice in case of summary assessment.
Time Limit For completion of Assessment
The time limit for completion of Assessment is within 9 months from the end of the financial year in which the return is furnished.
Scrutiny Assessment
A scrutiny assessment, as defined under section 143(3), involves a detailed examination of the income tax return. During this assessment, the tax authorities meticulously check the authenticity and accuracy of various claims, deductions, and other details you have provided in your return.
Time Limit To Serve Income Tax Notices
The time limit to serve is within 3 months from the end of the finance year in which returns are furnished.
Time Limit For completion of Assessment
The time limit for completion of Assessment is within 12 months from the end of the Assessment Year in which income was first assessable.
It is noteworthy that the time limit has been increased from 9 months to 12 months bythe Finance Act, 2023 with effect 01-04-2023.
Best Judgement Assessment
Best judgement assessment is defined under Section 144 of the Income Tax Act. Best judgement assessment is applied in situations where a taxpayer fails to submit an Income Tax return or refuses to assist in providing an explanation or supporting documentation for their tax assessment. Before carrying out such a decision, the assessing officer must notify the taxpayer.
Time Limit To Serve Notice
There is no time limit to serve notice in case of best judgement assessment.
Time Limit For completion of Assessment
The time limit for completion of Assessment is within 12 months from the end of the Assessment Year in which income was first assessable.
It is noteworthy that the time limit has been increased from 9 months to 12 months by the Finance Act, 2023 with effect 01-04-2023.
Reassessment
Section 147 of the Income Tax Act allows for the reassessment or recomputation of income that may not have been reported to the tax authorities for various reasons. This provision serves as a corrective mechanism to address errors or omissions in income reporting.
Time Limit To Serve Notice
Applicable a 31/08/2024
Notice to be issued within 3/10 years from the end of the financial year in which notice the relevant assessment year in which income has escaped assessment
Applicable from 01/09/2024
Section 148 notice to be issued within 3 years and 3 months or within 5 years and 3 months from the end of the relevant assessment year in which income has escaped assessment
Section 148A notice to be issued within 3 years of within years from the end of the relevant assessment year in which income has escaped assessment.
Time Limit For completion of Assessment
The time limit for completion of Assessment is within 12 months from the end of the financial year in which notice for reassessment was served.
Fresh Assessment
The time limit for completion of Assessment is within 12 months from the end of the financial year in which the order was received or passed.
Giving Effect To Appeal Results
The time limit to give effect to the results of the appeal is within 3 months from the end of the month in which the order was received or passed.
Giving Effect To Any Finding Or Direction
The time limit to give effect to any findings or directions is within 12 months from the end of the month in which the order is received or passed.
For Assessment Of Partners If The Assessment Is Made On Firm
The time limit is within 12 months from the end of the month in which the assessment order is passed in case of the firm.
Special Remark
For the purpose of completion of assessment in case of an updated return, the time limit of 12 months shall be counted from the end of the financial year in which the updated return is furnished. It was inserted by the Finance Act 2022 w.e.f. Assessment Year 2022-23. Further the time limit has been increased from 9 months to 12 months by the Finance Act. 2023 with effect 01/04/2023.
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