Time Limit for Re-computation of income/amendment of order of the past years in certain cases – Section 155 - Income Tax - Ready Reckoner - Income Tax

Time Limit for Re-computation of income/amendment of order of the past years in certain cases Section 155 Section Situations Time Limit 155(1) Amendment of partners assessment in case of share of the partner in the income of the firm has not been included in the assessment of the partner or, if included, is not correct Within 4 years from the end of the financial year in which final order is passed in case of firm. 155(1A) 155(2) Amendment of partners assessment in respect of remuneration deductible u/s 40(b) due to assessment or reassessment of firm Within 4 years from the end of the financial year in which final order is passed in case of firm. 155(4) Recomputation of total income for succeeding year(s) necessitated because of loss or depreciation for an earlier year, in consequence of recomputation in proceeding u/s 147 Within 4 years from the end of the financial year in which order u/s 147 is passed. 155(7B) Recomputing of deemed capital gain u/s 47A Within 4 years from end of PY in which capital asset is converted into stock-in-trade or in which parent company/holding company ceases to have 100% shareholding in subsidiary company. 155(11) Amending order of assessment so as to exclude amount of capital gain not charged to tax u/s 54H Within 4 years from the end of the PY in which compensation was received by the assessee. 155(11A) Amending order of assessment so as to allow deduction u/s 10A or 10AA [Inserted by FA, 2023 w.e.f 01.04.2024] or 10B or 10BA , as the case may be, in respect of such income or part thereof as is received or brought into India, after the expiry of 6 months from the end of the relevant previous year. Within 4 years from the end of the PY in which such income is so received in or brought into India. 155(14) Amendment of order of assessment or intimation or deemed intimation to give credit for TDS/TCS certificate not furnished with return but filed within 2 years from the end of the AY to which TDS/TCS relates. Within 4 years from the end of the FY in which the TDS certificate was furnished. 155(14A) Where in the assessment for any previous year or in any intimation or deemed intimation u/s 143(1) for any previous year, credit for income-tax paid in any country outside India or a specified territory outside India referred to in section 90 / 90A / 91 has not been given on the ground that the payment of such tax was under dispute, and if subsequently such dispute is settled; and the assessee, within 6 months from the end of the month in which the dispute is settled, furnishes to the AO evidence of settlement of dispute and evidence of payment of such tax along with an undertaking that no credit in respect of such amount has directly or indirectly been claimed or shall be claimed for any other assessment year. The AO shall amend the order of assessment or any intimation or deemed intimation u/s 143(1) , as the case may be, and the provisions of section 154 shall, so far as may be, apply thereto. However, the credit of tax which was under dispute shall be allowed for the year in which such income is offered to tax or assessed to tax in India. 155(15) Recomputation of capital gains based on value adopted by Stamp Valuation Authority u/s 50 subsequently revised in any appeal or revision u/s 50C(2)(b) . Within 4 years from the end of the PY in which the order revising the value was passed in that appeal or revision or reference. 155(16) Amendment of amount due to recomputation of capital gain due to reduction of normal or enhanced compensation received and taxable u/s 45(5) as per court or Tribunal order. Within 4 years from the end of the PY in which the order reducing the compensation was passed. 155(17) Recomputation of total income due to withdrawal of deduction under section 80RRB which was already allowed and subsequently the patent was revoked or the name of the assessee was exclude from patent register as patentee either by controller or by the Court. Within 4 years from the end of the PY in which the Controller or Court had passed the order. 155(18) [ Inserted by F.A. 2022 ] Where any deduction in respect of any surcharge or cess, which is not allowable as deduction under section 40 , has been claimed and allowed in the case of an assessee in any previous year, such claim shall be deemed to be under-reported income of the assessee for such previous year for the purposes of section 270A(3) . Exception:- in a case where the assessee makes an application to the Assessing Officer in the Form 69 and on or before the 31st day of March, 2023 , requesting for recomputation of the total income of the previous year without allowing the claim for deduction of surcharge or cess and pays the amount due and furnished Form No.70 to the Assessing Officer within thirty days from date of making the payment , such claim shall not be deemed to be under-reported income for the purposes of section 270A(3). the period of four years specified in section 154(7) being reckoned from the end of the previous year commencing on the 1st day of April, 2021 An application requesting for recomputation of total income of the previous year without allowing the claim for deduction of surcharge or cess, which has been claimed and allowed as deduction under section 40 in the said previous year, shall be made in Form No. 69 on or before the 31st day of March, 2023. [ Rule 132(1) ] Note:- Read with Section 40(a)(ii) and Rule 132 ] 155(19) [ Inserted by FA, 2023 w.e.f. 01.04.2023] Any expenditure incurred for the purchase of sugarcane has been claimed by an assessee, being a co-operative society engaged in the business of manufacture of sugar, and such deduction has been disallowed wholly or partly in any previous year commencing on or before the 1st day of April, 2014. The Assessing Officer shall, on the basis of an application made by such assessee in this regard, recompute the total income of the assessee for such previous year after allowing deduction. The period of four years specified in section 154(7) of that section shall be reckoned from the end of previous year commencing on the 1st day of April, 2022 (i.e. on or before 31st March 2027) . 155(20) [ Inserted by FA, 2023 w.e.f. 01.04.2023] Where any income has been included in the return of income furnished by an assessee under section 139 for any assessment year (herein referred to as the relevant assessment year) and tax on such income has been deducted at source and paid to the credit of the Central Government in accordance with the provisions of Chapter XVII-B in a subsequent financial year. The credit of such tax deducted at source shall not be allowed in any other assessment year. The Assessing Officer shall, on an application made by the assessee in such form, within a period of two years from the end of the financial year in which such tax was deducted at source, amend the order of assessment or any intimation allowing credit of such tax deducted at source in the relevant assessment year. The period of four years specified in section 154(7) of that section shall be reckoned from the end of the financial year in which such tax has been deducted. Application under of section 155(20) regarding credit of tax deduction at source - The application required to be made by the assessee shall be in Form No. 71 . [ w.e.f. 01.10.2023 Rule 134 of Income Tax Act ]