Summary: The time limits for issuing various income-tax notices and completing assessments are outlined under different sections of the Income Tax Act. For Summary Assessment under Section 143(1), no specific notice period is required, and completion must occur within 9 months from the end of the financial year in which the return is filed. Scrutiny Assessments under Section 143(3) require a notice to be served within 3 months of the financial year end, with assessment completion within 12 months from the end of the Assessment Year. Best Judgment Assessments under Section 144 have a completion deadline of 12 months from the end of the Assessment Year. Re-assessments under Section 147 need notice within 3 or 10 years depending on the case, with assessment completion within 12 months from when the notice was served. Fresh Assessments must be completed within 12 months from the end of the financial year in which the order was passed. For appeal results and specific findings, the completion time is within 3 to 12 months depending on the type of order. Updated returns allow an extension, with deadlines now adjusted to 12 months from the financial year end, as per Finance Acts 2022 and 2023.
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 | Notice to be issued within 3/10 years 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 |
* 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.
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1. The time limit has been increased from 9 months to 12 months by the Finance Act, 2023 with effect 01-04-2023.
2. The time limit has been increased from 9 months to 12 months by the 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 by the Finance Act, 2023 with effect 01-04-2023
[As amended by Finance Act, 2024]
