CA Ruby Bansal
Quick Summary
Time limits for issuing income tax notices and completing assessments under the Income Tax Act are:
| Section | Nature of Assessment | Issue Notice | Completion of the Assessment |
| Section 143(1) | Summary Assessment | - | Within 9 months from the end of the financial year in which the return is furnished. |
| Section 143(3) | Scrutiny Assessment | Notice to be served within 3 months from the end of the financial year is furnished | Within 12 months from the end of the financial year in which income was first assessable. |
| Section 144 | Best Judgement Assessment | Within 12 months from the end of the financial year in which income was first assessable. | |
| Section 147 | Re-assessment | Applicable till 31-08-2024Notice to be issued within 3/10 years from the end of the relevant assessment year in which income has escape assessment.Applicable till 01-09-2024Section 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. |
Within 12 months from the end of the financial year in which notice for re-assessment was served. |
| Fresh Assessment | Within 12 months from the end of the financial year in which the order was received or passed. | ||
| Giving effect to appeal results | Within 3 months from the end of the month in which the order was received or passed. | ||
| For giving effect to any finding or direction | Within 12 months from the end of the month in which such order is received or passed. | ||
| For the assessment of partners if the assessment is made on the firm | Within 12 months from the end of the month in which assessment order is passed in case of the firm. |
These time limits are crucial for both taxpayers and the tax authorities to ensure timely processing and compliance.
FAQ :
A summary assessment notice must be issued within 9 months from the end of the financial year in which the return is furnished.
A scrutiny assessment must be completed within 12 months from the end of the financial year in which the income was first assessable.
For re-assessments applicable until 31-08-2024, a notice is issued within 3/10 years from the end of the relevant assessment year. From 01-09-2024, Section 148 notices are issued within 3 years and 3 months or 5 years and 3 months from the end of the relevant assessment year.
A fresh assessment must be completed within 12 months from the end of the financial year in which the order was received or passed.
Giving effect to appeal results must be done within 3 months from the end of the month in which the order was received or passed.
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