The document provides a consolidated overview of the statutory time limits for issuing notices and completing various assessments under the Income-tax Act, 1961, as amended by the Finance Act, 2026. It explains that an assessment not completed within the prescribed period becomes time-barred, making adherence to statutory timelines essential for both taxpayers and tax authorities. Summary assessments under Section 143(1) must be completed within nine months from the end of the financial year in which the return is furnished. Scrutiny assessments under Section 143(3) require the notice to be issued within three months from the end of the financial year in which the return is filed and must be completed within twelve months from the end of the relevant assessment year. Best Judgment Assessments under Section 144 also carry a twelve-month completion period. For reassessments under Section 147, notices under Sections 148 and 148A are subject to specified limitation periods depending on the escaped income, while reassessments must be completed within twelve months from the end of the financial year in which the notice is served. The document also prescribes timelines for fresh assessments, appeal effect orders, findings or directions, and partner assessments, while highlighting amendments introduced by the Finance Acts, 2022 and 2023 extending several assessment completion timelines to twelve months.
Time limit for issuing different income-tax notices and completion of the assessment
Different time limits have been prescribed under the Income-tax Act for Summary Assessment, Scrutiny Assessment, Best Judgment Assessment and Income Escaping Assessment. If an assessment is not completed within the prescribed time limit, it becomes time barred.
Time limit for issuing different income-tax notices and completion of the assessment
| Section | Nature of Assessment | Time Limit | |
| To serve/ issue notice | For 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 in which return is furnished | Within 12 months1 from the end of the Assessment Year in which income was first assessable* |
| Section 144 | Best Judgment Assessment | – | Within 12 months2 from the end of the Assessment Year in which income was first assessable* |
| Section 147 | Re-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 |
* 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 furnished3.
Notes:
1 The time limit has been increased from 9 months to 12 months bythe Finance Act, 2023 with effect 01-04-2023.
2 The time limit has been increased from 9 months to 12 months bythe Finance Act, 2023 with effect 01-04-2023.
3 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 bythe Finance Act, 2023 with effect 01-04-2023
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“This document contains the provisions of the Income-tax Act, 1961, as amended by the Finance Act, 2026.”
[As amended by Finance Act, 2026]
(Republished with amendments)
