Notices and Orders under Income Tax | Time Limit for Issuance|

Time Limit for Issuance of Notices and order in Income Tax

Notice under Income Tax

There are different sections in the Income Tax Act, 1961 stating the time limits for the issuance of notice under Income Tax and other orders. These provisions have been summarized in this article for better and easy understanding.

  1. Section 142(1) (i): It states for the notice that requires assesses to furnish the Income Tax Return. This notice under Income Tax can be issued after the end of the relevant assessment year.
  2. Section 143(1): It states the Intimation of Return. Such intimations cannot be issued after the expiration of one year from the date of the end of financial year for which the returns were filed by the taxpayer.
  3. Section 143(2): It provides for the Notice u/s 143(2), issued for conducting Scrutiny Assessment. It has to be served to assesse on or before the end of six months from the date of end of financial year for which the return was filed.
  4. Section 153: It states the time limit for making an Assessment Order under Section 143 or Section 144. Such notice under Income Tax cannot be sent after the 21 months from the end of the assessment year in which the income was assessable first.
  5. Section 149: It states the time limit for issuance of Notice under Income Tax as per Section 148.
  6. Section 149(3): It states the time limit for issuing Notice under Section 148 to the agent of the Non-Resident Indian. Such notices cannot be issued after the six years from the end date of the relevant assessment year.
  7. Section 150: It states that in certain situations no time limit has been provided for notice under Section 148. Such notice under Income Tax can be issued by the department any time which it seems appropriate for the purpose of assessment or re-assessment. In case of re-computation due to an order passed by authorities for specific proceedings or appeal, such notices can be issued as well.
  8. Sec 153(2): It provides the provisions on order of assessment or re-assessment or re-computation under Section 147. Such an order cannot be passed after the expiration of nine months from the date of end of the financial year for which assesses has received a notice under Section 148 of the Income Tax Act, 1961.
  9. Section 245D (4A): It specifies the time limit for passing the order of Settlement Commission. As per this section the Settlement Commission has to pass an order of settlement under Section 245D (4). This order has to be passed within 18 months from the date of the application made by the applicant.
  10. Section 250: It states the time limit for issuance of order by the Commissioner of Income Tax (Appeals) or CIT (A). Wherever it is possible the CIT (A), always hears the appellant and decide the appeal within the prescribed time period of one year from the end of financial year for which the appeal was filed as per Section 246A.

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    Author: Anil Agrawal
    EZYBIZ India Consulting LLP, New Delhi. The firm is business and tax consultancy firm providing consultancy in Taxation, Regulatory, Transfer pricing, Valuation, Corporate funding and Business set up matters. He may be reached at 9899217778 or anil@ezybizindia.in.