Regarding Time Limit of Rectification of Order

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Under Section 154 of the Income-Tax Act, 1961, there's a four-year time limit for rectifying an order passed by the Assessing Officer (AO). This period starts from the end of the financial year in which the original order was made. The AO can initiate this rectification themselves or upon an application from the assessee. Once an application is filed, the AO generally has six months to resolve it.

Suresh S. Tejwani

Suresh S. Tejwani (Querist)

26 March 2025 if order passed by AO, then what is time limit for rectification of such order?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

26 March 2025 Under Section 154 of the Income Tax Act, 1961, the time limit for rectification of an order passed by the Assessing Officer (AO) is four years from the end of the financial year in which the order was passed.
If a rectification application is filed, the AO must dispose of it within six months from the end of the month in which the application was received.

CA Rashmi Gandhi

CA Rashmi Gandhi (Expert)

28 March 2025 The time limit for rectification of an order passed by the Assessing Officer (AO) under Section 154 of the Income-tax Act is:

4 years from the end of the financial year in which the order sought to be rectified was passed.

Example:
If the AO passed an order on 15th October 2024, the rectification can be made up to 31st March 2029.

This rectification can be initiated either by:
1.The AO on his own,
2. Or on an application made by the assessee.

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