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.​

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“This document contains the provisions of the Income-tax Act, 1961, as amended by the Finance Act, 2026.”

 

 

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

• Section 148 notice to be issued within 3 years and 3 months or within 5 years and 3 months from the end of the relevant assessment year in which income has escaped assessment

• Section 148A notice to be issued within 3 years or within 5 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 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

 

 

 

[As amended by Finance Act, 2026]