Income tax notice can come up to 4 years after the financial year ends, plus 3 extra months (i.e., 3 years from the end of Assessment Year).
Example: FY 2025–26 → notice possible till 31-03-2030 (or 30-06-2030).
Income tax notice can come up to 4 years after the financial year ends, plus 3 extra months (i.e., 3 years from the end of Assessment Year).
Example: FY 2025–26 → notice possible till 31-03-2030 (or 30-06-2030).
The countdown starts from the end of the Assessment Year, not the Financial Year. The Finance Act 2024 added this 3-month buffer to give the Tax Department enough time to pass an order under Section 148A (the preliminary inquiry) before officially issuing the reassessment notice. This prevents the "last-minute rush" that used to happen on March 31st every year.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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Gupta Sachdeva & Co. Chartered Accountants
New Delhi
CA Final
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