The Finance Bill 2025 introduces amendments to clarify the exclusion of time limits in assessment, reassessment, and recomputation proceedings under the Income Tax Act, 1961. As per the current provisions, if assessment proceedings are stayed by a court order, the duration of the stay is excluded from the time limits for respective sections of the Act. The amendment specifically addresses the period between the date a court stay is granted and when the certified copy of the order vacating the stay is received by the jurisdictional Principal Commissioner or Commissioner. Sections impacted by the amendment include 144BA, 153, 153B, 158BE, 158BFA, 263, 264, and Rule 68B of Schedule II. These amendments are intended to provide clarity regarding the commencement and end date for excluding the time period during which a court stay is in effect, ensuring accurate computation of time limits for assessments.
Page Contents
- FAQs Budget 2025: Clarification regarding commencement date and the end date of period stayed by Court
- Q1. What period is excluded in case assessment proceedings under section 153 of Income-tax Act, 1961 are stayed by Court prior to Finance Bill 2025?
- Q.2 What is the amendment regarding the time limit for completion of assessment, reassessment and recomputation in section 153 of Income-tax Act, 1961 in Finance Bill 2025?
- Q3. What sections regarding the vacation of stay of Court has been amended in Finance Bill 2025?
FAQs Budget 2025: Clarification regarding commencement date and the end date of period stayed by Court
Q1. What period is excluded in case assessment proceedings under section 153 of Income-tax Act, 1961 are stayed by Court prior to Finance Bill 2025?
Ans. As per existing provisions (Clause (ii) of Explanation 1) in section 153 of the Income Tax Act,1961 following period shall be excluded in computation of time limits in respective sections: –
“the period during which the assessment proceeding is stayed by an order or injunction of any court”.
Q.2 What is the amendment regarding the time limit for completion of assessment, reassessment and recomputation in section 153 of Income-tax Act, 1961 in Finance Bill 2025?
Ans. As per Finance Bill 2025 amendment, as per clause (ii) of Explanation 1 of section 153 of the Income Tax Act,1961 following period shall be excluded in computation of time limit for completion of assessment, reassessment and recomputation: – “the period commencing on the date on which stay on the assessment proceeding was granted by an order of any court and ending on the date on which certified copy of the order vacating the stay is received by the jurisdictional Principal Commissioner or Commissioner.”
Q3. What sections regarding the vacation of stay of Court has been amended in Finance Bill 2025?
Ans. Sections 144BA,153,153B,158BE,158BFA,263,264 and Rule 68B of Schedule II of the Income Tax Act,1961 has been amended to clarify the commencement and end date for exclusion of time period of limitation of respective sections.
