Time limit for completion of assessment, reassessment and re-computation - Section 153 - Income Tax - Ready Reckoner - Income Tax

Time limit for completion of assessment, reassessment and re-computation application w.e.f. 1st Jun, 2016. - Section 153 1. Section 153(1) - Assessment u/s 144 Time Limit to be determined from the end of the A.Y. in which income was first assessable. a. No order of assessment shall be made after the expiry of 21 months from the end of the assessment year in which the income was first assessable. 21 Months b. In respect of an order of assessment relating to AY commencing from 01-04-2018 18 months from end of RAY. 18 Months c. In respect of an order of assessment relating to AY commencing from 01-04-2019 12 months from end of RAY. 12 Months d. In respect of an order of assessment relating to AY commencing from 01-04-2020 18 months from end of RAY. 18 Months e. In respect of an order of assessment relating to AY commencing from 01-04-2021 9 months from end of RAY. [ Amendment made by F.A. 2022 ] 9 Months f. In respect of an order of assessment relating to AY commencing from 01-04-2022 9 months from end of RAY. [ Inserted by F.A. 2023 ] 12 Months 2. Order of Assessment u/s 143 / 144 (a) Where a return is made u/s 139(8A) Updated Return Time limit for completion of an assessment order u/s 143(3) / 144 shall be at any time before expiry of 9 months 12 months [Amended by FA, 2023 ] from end of the financial year which such return was furnished. [ Section 153(1A) ] (b) where a return is furnished in consequence of an order u/s 119(2)(b) , an order of assessment under section 143 or section 144 may be made at any time before the expiry of twelve months from the end of the financial year in which such return was furnished. [Inserted vide Finance (No. 2) Act, 2024 Section 153(1B)] 12 Months 3. Section 153(2) Assessment/Re-assessment or recomputation u/s 147 Time Limit to be determined from the end of the financial year in which notice u/s 148 is served. a. Where notice u/s 148 is served on or before 01.04.2019 9 Months b. Where notice u/s 148 is served on or after 01.04.2019 12 Months 4. Section 153(3) Fresh assessment or fresh order u/s 92CA, where original assessment of income has been set aside or cancelled by Tribunal u/s 250 or u/s 254 , or by CIT u/s 263 or 264 a. Where the order u/s 254 order under section 250 or section 254 [substituted vide Finance (No. 2) Act, 2024 ] is received by PCCIT/CCIT/PCIT/CIT as the case may be, the order u/s 263 or 264 is passed by PCCIT/CCIT [ Amended by FA, 2023 ] PCIT/CIT on or after 1 st day of April, 2019 12 months from the end of the FY in which such order of set aside or cancelling the assessment. (Earlier period was 9 months) 12 Months 5. Section 153(3A) - where an assessment or reassessment is pending on the date of initiation of search under section 132 or making of requisition under section 132A , the period available for completion of assessment or reassessment, as the case may be, under the said sub-sections shall, [ inserted by FA, 2023 , w.e.f. 01.04.2023 ] Extended by a. in a case where such search is initiated under section 132 or such requisition is made under section 132A ; 12 Months b. in the case of an assessee, to whom any money, bullion, jewellery or other valuable article or thing seized or requisitioned belongs to; 12 Months c. in the case of an assessee, to whom any books of account or documents seized or requisitioned pertains or pertain to, or any information contained therein, relates to; 12 Months 6. Section 153(4) Where a reference u/s 92CA(1) is made during the course of the proceeding for the assessment or reassessment, the period available for completion of assessment or reassessment, under the said u/s 153(1)/(1A)/(2)/(3)/(3A) shall be extended by 12 months. An Additional time period of 12 months is available for completion of assessment/ reassessment u/s 153(1)/(1A)/(2)/(3)/(3A) 7. Section 153(5) Where effect to an order u/s 250 or 254 or 260 or 262 or 263 or 264 is to be given by AO, wholly or partly, otherwise than by making a fresh assessment or reassessment. a. Such effect shall be given within a period of 3 months from the end of the month in which - (i) Order u/s 250 or 254 or 260 or 262 is received by PCCIT/CCIT/PCIT/CIT, (ii) Order u/s 263 or 264 is passed by PCIT/CIT, as the case may be. 3 Months b. Where it is not possible for AO to give effect within aforesaid period, for reasons beyond his control, PCIT/CIT on receipt of such request in writing from AO, if satisfied, may allow an additional period of 6 months to give his effect to the order. 6 Months c. For the purpose of order u/s 250 or 254 or 260 or 262 or 263 or 264 verification requires for any issue by way of submission of any document by an assessee or any other person or where an opportunity of being heard is provided to assessee, the order u/s 250 or 254 or 260 or 262 or 263 or 264 shall be made within time specified in section 153(3). 8. Section 153(6) (i) Where the assessment, reassessment or recomputation is made on the assessee or on any person in consequence of or to give effect to any finding or direction contained in an order u/s 250 or 254 or 260 or 262 or 263 or 264 or in a order of any court in a proceeding otherwise than by way of appeal or reference under this Act. a. Nothing contained in Sections 153(1), (1A) and (2) shall apply to the following classes of assessments, reassessments and re-computation which may, subject to the provisions of Sections 153(3), (5) and (5A), be completed - on or before the expiry of 12 months from the end of the month in which such order is received or passed by the Principal Commissioner or Commissioner, as the case may be; or 12 Months Section 153(6) (ii) - Where, in the case of a firm, an assessment is made on a partner of the firm in consequence of an assessment made on the firm under section 147 - on or before the expiry of 12 months from the end of the month in which the assessment order in the case of the firm is passed. 12 Months 9. Section 153(7) Where effect to any order, finding or direction referred to in section 153(5)/(6) is to be given by AO, within time specified in said sections 153(5)/153(6), and such order has been received or passed, as the case may be, by IT Authority specified therein before 1 st day of June, 2016 - the Assessing Officer shall give effect to such order, finding or direction, or assess, reassess or recompute the income of the assessee, on or before the 31st day of March, 2017. 10. Section 153(8) Where any proceeding initiated or the order of assessment or reassessment made u/s 153A(1) or Section 153B(1) Section 153B(1) or Section 153BE [ Substituted vide Finance (No. 2) Act, 2024 ] relating to assessment of search cases has been annulled in appeal or other legal proceedings and assessment or reassessment relating to AY which was abated has revived u/s 153A(2) Section 153A(2) or Section 153BA(5) [ Substituted vide Finance (No. 2) Act, 2024 ] - shall be made - within a period of 1 year from the end of the month of such revival or - within the period specified in section 153 or - Section 153B(1) Section 153B(1) or Section 153BE [ Substituted vide Finance (No. 2) Act, 2024 ] , whichever is later. 1 year