Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

Direct & Indirect Taxes, Tax Ready Reckoner, Tax Management, Tax Act. & Rules, Tax Planning & Tax Savings.

Limitation / Compliance by Assessee , Assessing Authority, etc. Under Income Tax Act, 1961

Limitation / Compliance by Assessee , Assessing Authority, etc. Under Income Tax Act, 1961
Limitation / Compliance by Assessee , Assessing Authority, etc. Under Income Tax Act, 1961

1.   Advance Tax

Advance Tax  All assessees other than covered under section  44AD or 44ADA

Section Nature of Compliance by Assessee, Assessing Authority, etc. Limitation
211(1) Payment of advance income-tax in specified  instalments:
(i) 15% On or before 15th June of the  relevant Financial Year
(ii) 45% – already paid on or before 15th June On or before 15th September of  the relevant Financial Year
(iii) 75% – already paid on or before 15th  September On or before 15th December of  the relevant Financial Year
(iv) 100% – already paid on or before 15th  December On or before 15th March of the  relevant financial year
220(1) Payment of amount other than advance tax in  response to notice under section 156 Within 30 days of the service of  demand notice or within date  extended on request or within  shorter period specified in  revenue’s interest

2.   Refund

Section Nature of Compliance by Assessee, Assessing Authority, etc. Limitation
239(2)(c) Making claim for refund Within 1 year from the last day  of relevant assessment year

3.   Return on Income

Section Nature of Compliance by Assessee, Assessing Authority, etc. Limitation
139(1) Filing return of income 31st July/31st October/30th  November. of the assessment  year, as the case may be
139(4) Filing belated return of income It should be furnished before the  end of relevant assessment year  or before completion of  assessment whichever is earlier.
139(4A) Filing return by every person receiving income in  respect of which he is assessable as a  representative assessee from property held under  trust/legal obligation wholly or partly for  charitable or religious purposes, etc., if total  income exceeds maximum amount not chargeable  to tax Within time allowed under  section 139(1)
139(4B) Filing of return by every political party, having  taxable income, by its Chief Executive Officer Within time allowed under  section 139(1)
139(4C) Filing of returns by scientific research institutions,  news agency, trade union, notified trust or  institution, educational and medical institutions  whether or not financed by the Government,  notified body or authority, infrastructure debt  fund, mutual funds, securitisation trust, venture  capital company, venture capital fund, etc. Within time allowed under  section 139(1)
139(4D) Filing of return by a university, college or other  institution referred to in section 35(1)(ii) & (iii) Within time allowed under  section 139(1)
139(4E) Filing of return of income by a business trust Within time allowed under  section 139(1)
139(4F) Filing of return of income by an investment fund  referred to in S 115UB Within time allowed under  section 139(1)
139(5) Filing revised return For assessment year 2019-20  and onwards by the end of the  assessment year or before  the completion of assessment,  whichever is earlier
139(9) Rectifying defect in return of income Within 15 days from date of  intimation by Assessing Officer  or extended time
172(3) Furnishing of return of the full amount paid or  payable to non-resident owner or charterer of ship  towards passenger fares, freight, etc. by master of  ship to Assessing Officer Before departure of ship from  any port in India, or within 30  days thereafter if permitted by  the Assessing Officer
172(7) Submission of claim by owner or charterer of ship  that assessment be made of his total income of the  previous year and tax payable by him be  determined in accordance with other provisions of  the Act. Before the expiry of the  assessment year relevant to the  previous year in which the date  of departure of the ship from  Indian port falls
142A Report of Valuation Officer estimating the value  including market value of any asset Within a period of 6 months  from the end of the month in  which a reference is made u/s  142A(1) by the A.O.

4.   Assessment / Reassessment under Income Tax

Section Nature of Compliance by Assessee, Assessing Authority, etc. Limitation
143(1) Sending intimation regarding tax or interest due  from assessee or refund due to the assessee Before expiry of 1 year from the  end of the financial year in  which the return is made.
143(2) Serving notice for scrutiny, requiring attendance  of assessee/production of evidence Before the expiry of 6 months  from the end of the financial  year in which the return/revised  return is furnished
147/149 Reassessment where assessment has been made  u/s 143(3) or 147 where the escapement of income is not because of assessee’s failure to file return u/s  139 or in pursuance of notice u/s 142(1) or 148 or  to disclose fully and truly all material facts other  than a case where any income in relation to any  asset (including financial interest in any entity)  located outside India chargeable to tax has escaped  assessment for any assessment year Within 4 years from end of  relevant assessment year
149(1) Serving notice by Assessing Officer for reassessment:  Where the escaped income—
  (a) is less than ₹1,00,000 Within 4 years from the end of  the relevant assessment year
  (b) is ₹1,00,000 or more Within 6 years from the end of  relevant assessment year
  (c) any income in relation to any asset (including  financial interest in any entity) located outside  India chargeable to tax has escaped  assessment for any assessment year Within 16 years from the end of  relevant assessment year
149(3)   Issuing notice under section 148 to agent of non-resident under section 163 Within 6 years from the end of  the relevant assessment year
153(1) Passing assessment order under section 143 or 144 Existing provisions 

In respect of an order of  assessment relating to  assessment year commencing  on 1.4.2018 — 

18 months from the end of  relevant assessment year in  which the income was first  assessable.

In respect of an order of  assessment relating to  assessment year commencing  on or after 1.4.2019 — 

12 months from the end of  relevant assessment year in  which the income was first  assessable.

153(2) Making assessment/reassessment, etc., under  section 147 Where the notice under  section 148 is served on or  after 1.4.2019— 

 

12 months from the end of the  Financial Year in which the  notice u/s 148 was served on  the assessee.

153(3) Making assessment order in pursuance of order  under section 250, 254, 263 or 264 setting aside or  cancelling assessment If order under section 250/254 is  received/passed u/s 263/264 by  the Commissioner within 9  months from the end of the  financial year in which order u/s  250/254 is received by Chief  Commissioner/Commissioner or  order u/s 263/264 is passed by  Chief Commissioner or  Commissioner

Where the order under  section 254 is received by the  Principal Chief  Commissioner or Chief  Commissioner or Principal  Commissioner or  Commissioner or, as the case  may be, the order under  section 263 or section 264 is  passed by the Principal  Commissioner or  Commissioner on or after the  1st day of April, 2019— 

12 months from the end of the  Financial Year in which such  order of set aside or cancelling  the assessment:

(i) passed by the tribunal u/s  254 was received by the  Principal CCIT/CCIT/  Principal CIT/CIT or

(ii) was passed by the  Principal CIT/CIT, u/s  263 or 264  as the case may be.

153(4) Where reference under section 92CA(1) is made  during the course of the proceedings for  assessment or reassessment The period mentioned against  section 153(1), (2) & (3) above  shall be extended by 12 months
153(5) Where effect to an order u/s 250 or section 254 or  section 260 or section 262 or section 263 or  section 264 is to be given by the A.O. otherwise  than by making a fresh assessment or  reassessment Effect shall have to be given  within 3 months from the end of  the month in which order section  250 or section 254 or section  260 or section 262 is received by  Principal Chief Commissioner/  Chief Commissioner/Principal  Commissioner/Commissioner or  order u/s 263 or 264 is passed by  the Principal Commissioner/  Commissioner

However, it can be extended by  6 months by Principal  Commissioner/ Commissioner in  certain cases

Such effect shall be given  within a period of 3 months  from the end of the month in  which—

(i) order under section 250 or  section 254 or section 260  or section 262 is received  by the Principal Chief  Commissioner or Chief  Commissioner or  Principal Commissioner  or Commissioner,

(ii) the order under section  263 or section 264 is  passed by the Principal  Commissioner or  Commissioner:  as the case may be,

Provided that where it is not  possible for the Assessing  Officer to give effect to such  order within the aforesaid  period, for reasons beyond his  control, the Principal  Commissioner or  Commissioner on receipt of  such request in writing from  the Assessing Officer, if  satisfied, may allow an  additional period of 6 months  to give effect to the order.  Provided further that where an  order under section 250 or  section 254 or section 260 or  section 262 or section 263 or  section 264 requires  verification of any issue by  way of submission of any  document by the assessee or  any other person or where an  opportunity of being heard is to  be provided to the assessee, the  order giving effect to the said  order u/s 250 or section 254 or  section 260 or section 262 or  section 263 or section 264 shall  be made within the time  specified in section 153(3).

153B Making assessment in case of search or requisition  (a) For each assessment year following within 6  assessment years immediately preceding the  assessment year relevant to the previous year in  which the search is conducted Within 21 months from the end  of the financial year in which the  last of the authorisations for  search was executed.

For assessment of other person  covered u/s 153C, the limitation  is 21 months from (33 months if  reference is made to TPO) the  end of the financial year in  which the last of authorisation  was executed or 9 months from  the end of the financial year in  which books of account or  documents or assets are handed  over u/s 153C to the  jurisdictional Assessing Officer,  whichever is later.

(b) For the assessment year relevant to the  previous year in which the search is conducted Within 21 (33 months if  reference is made to TPO)  months from the end of the  financial year in which the last  of the authorizations for search  was executed

For search and seizure cases  conducted in the financial year  2018-19, the time limit for  making an assessment order  under section 153A shall be  reduced from existing 21  months to 18 months from the  end of the financial year in  which the last of the  authorisations for search under  section 132 or for requisition  under section 132A was  executed.

Further, for search and seizure  cases conducted in the  financial year 2019-20 and  onwards, the said time limit  shall be further reduced to 12  months from the end of the  financial year in which the last  of the authorisations for search  under section 132 or for  requisition under section 132A  was executed.

Similarly, the period of  limitation for making the  assessment or reassessment in  case of other person referred to  in section 153C, shall be—

— the period available to  make assessment or reassessment in case of person  on whom search is conducted  (see above) or

— 12 months from the end of  the financial year in which  books of accounts or  documents or assets seized or  requisitioned are handed over  under section 153C to the  Assessing Officer having  jurisdiction over such other  persons,

whichever is later. 

Where a proceeding before the  Settlement Commission abates  under section 245HA, the  period of limitation available  under this section for  assessment or reassessment  shall after the exclusion of the  period under sub-section (4) of  section 245HA shall not be less  than one year; and where such  period of limitation is less than  one year, it shall be deemed to  have been extended to one  year.

200A Sending intimation to the deductor specifying the  sum (including interest) determined to be payable  by or the amount of refund due to him after  making adjustment under 200A(1) in the statement  of TDS filed by the deductor Before the expiry of one year  from the end of the financial  year in which the statement is  filed.
201(3) Before the expiry of 7 years  from the end of the financial  year in which payment is made  or credit is given.  Order to be passed under section  201(1) for holding the assessee  deemed to be in default for  failure to deduct the whole or  any part of the tax from a person  resident in India

5.   Appeal under Income Tax

Section Nature of Compliance by Assessee, Assessing Authority, etc. Limitation
249(2)/(3) read  with 154(2) Filing appeal to Commissioner (Appeals)—
(a) relating to tax deducted at source under  section 195(1) Within 30 days from the date of  payment of tax or within  extended time
(b) relating to any assessment/penalty Within 30 days from the date of  the service of notice of demand or within extended time
(c) in any other case Within 30 days from date of  communication of order or  within extended time
250(6A) Decision on appeal by Commissioner (Appeals) Wherever it is possible, within 1  year from the end of the  financial year in which appeal is  filed.
253(3)/(5) Filing appeal to Tribunal Within 60 days from the date on  which order sought to be  appealed against is  communicated or within  extended time.
253(4)/(5) Filing memo of cross-objections to Tribunal Within 30 days of receipt of  notice of filing appeal or within  extended time
254(2A) Decision on appeal by the Tribunal Wherever it is possible, within 4  years from the end of the  financial year in which appeal is  filed
260A(2) Filing of appeal to High Court Within 120 days of the date on  which order of Tribunal is  received.

6.   Settlement Commission

Section Nature of Compliance by Assessee, Assessing Authority, etc. Limitation
Proviso to S.  245C(1) Payment of addition income-tax in respect of  income disclosed in the application On or before the date of making  the application.
245D(1) Order for admission or rejection of application 14 days from the date of receipt  of application.

 

If no order has been passed  within the aforesaid period, the  application shall be deemed to  have been allowed to be  proceeded with

245D(2B), Furnishing of the report to the Settlement  Commission by CIT Within 30 days of receipt of  communication from Settlement  Commission
245D(4A) Order of settlement by the Settlement Commission  where the application is made on or after 1-6-2007 Within 18 months from the end  of the month in which the  application for settlement was  made.
Proviso 1 to  245D(6B) Filing of application for rectification by the  Principal Commissioner or the Commissioner or  the applicant as the case may be. Within a period of 6 months  from the end of the month in  which an order section 245D(4)  is passed.
245D(6B) Rectification of mistake in an order passed by  Settlement Commission (a) By settlement Commission  suo motto within a period of 6  months from the end of the  month in which the order is  passed

 

(b) within a period of 6 months  from the end of the month in  which an application for  rectification has been made by  the Principal Commissioner or  the Commissioner or the  applicant as the case may be.

245D(7) Completion of proceedings where settlement  becomes void as provided in section 245D(6) Within 2 years from the end of  the financial year in which the  settlement became void
245E Reopening of the proceedings completed by  Settlement Commission Where application is made u/s  245C on or after 1-6-2007,  completed proceedings shall not  be reopened

7.   Revision Under Income Tax / Wealth Tax

Section Nature of Compliance by Assessee, Assessing Authority, etc. Limitation
263(2)/25(3) Revising orders prejudicial to revenue by  Commissioner Within 2 years from the end of  financial year in which order  sought to be revised was passed
263(3)/25(4) Revision by Commissioner of orders passed  pursuant to any finding or direction by Tribunal,  High Court or Supreme Court No time limit
264(2)/25(1) Revision of orders by Commissioner on his own  motion (not prejudicial to assessee) Before the expiry of 1 year from  the date of order of Assessing  Officer
264(3)/25(1) Filing revision petition to Commissioner (order  not to be prejudicial to assessee) Within 1 year from date of  communication of order sought  to be revised or date of his  knowledge in respect thereof or  within the extended time
264(6) Passing an order in respect of application by an  assessee on or after 1st October, 1998 Within 1 year from the end of  the financial year in which such  application is made for revision.

8.   Rectification of Mistakes Under Income Tax / Wealth Tax

Section Nature of Compliance by Assessee, Assessing Authority, etc. Limitation
154(2)/35(7) Rectifying mistakes apparent from record for  assessment or other cases by any Income-tax  Authority Within 4 years from the end of  the financial year in which order  sought to be amended is passed
154(8) Passing of order making or refusing the  amendment under section 154 Within 6 months from the end of  the month in which the  application is received by the  Income-tax Authority.
155(1A) Where any remuneration to any partner is not  deductible u/s 40(b) in respect of any completed  assessment of a firm due to assessment/reassessment, or on reduction or enhancement made  in the income of a firm u/ss 154/155/250/254/260/  262/263/263 or order passed u/s 245D(4). Within 4 years from the end of  financial year in which the final  order is passed in case of firm/  AOP/BOI
155(4) Recomputing total income for succeeding year(s)  in respect of loss or depreciation recomputed under section 147 Within 4 years from the end of  financial year in which order under section 147 is passed
155(7B) Recomputing deemed capital gains under section  47A Within 4 years from the end of  previous year in which capital  asset is converted into stock-intrade or in which parent  company/holding company  ceases to have 100%  shareholding in subsidiary  company
155(10A) Amending order of assessment so as to exclude  unadjusted amount of capital gain on long-term  capital asset not chargeable under section 54E(1) Within 4 years from the end of  the financial year in which  original assessment is made
155(11) Amending order of assessment to exclude capital  gain not chargeable under section 54H Within 4 years from the end of  the previous year in which  compensation was granted
155(13) Amending order of assessment to allow deduction  under section 80HHB or section 80HHC or  section 80HHD or section 80HHE or section 80-O  or section 80R or section 80RR or section 80RRA  when such income has been received in or brought  into, India within such time as is allowed by the  Reserve Bank. Within 4 years from the end of  the previous year in which such  income is received or brought  into India.
155(14) Amending any intimation under section 143(1) on  the ground that TDS /TCS certificate was not filed  with return Within 2 years from the end of  the assessment year in which  such income is assessable
155(14A) Where in the assessment for any previous year  or in any intimation or deemed intimation under  section 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, section 90A or section 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  six months from the end of the month in which  the dispute is settled, furnishes to the Assessing  Officer 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 Assessing Officer shall  amend the order of assessment  or any intimation or deemed  intimation under section  143(1), as the case may be, and  the provisions of section 154  shall, so far as may be, apply  thereto:

Provided that 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) Amending the order of assessment to recompute  the capital gain by taking the revised value for  purposes of stamp duty to be the full value of  consideration Within 4 years from the end of  the previous year in which the  order revising the value was  passed in that appeal or revision  or reference.
155(16) Amending the order of assessment to re-compute the capital gain by taking the compensation or  consideration reduced by the Court, etc.       Within 4 years from the end of the previous year in which the  order reducing the compensation  is passed by the Court, etc.
155(17) Amending the order of assessment to re-compute  the income by way of royalty attributable to the  period during which the patent had been revoked  or the period for which the assessee’s name was  excluded as patentee Within 4 years from the end of  the previous year in which the  order of the Controller or the  High Court was passed
254(2) Rectification of apparent mistake by Tribunal Within 4 years from the date of  impugned order  W.e.f. 1.6.2016, it shall be  within 6 months from the end of  the month in which order was  passed.

9.   Order of Appellate Tribunal

Section Nature of Compliance by Assessee, Assessing Authority, etc. Limitation
254(2A) Order by Tribunal Wherever it is possible the  Appellate Tribunal, may hear  and decide such appeal within a  period of four years from the end  of the financial year in which  such appeal is filed
Proviso to  254(2A) Disposal of appeal if order of stay has been  granted by Tribunal Within 180 days from the date of  the stay order, otherwise the say  shall stand vacated after that  date.

 

However, if such appeal is not so  disposed off within 180 days, the  Tribunal may extend the period  stay but the aggregate period  including 180 days cannot  exceed 365 days.

Further the above proviso has  been amended to provide that  ITAT may grant stay under  the first proviso subject to the  condition that the assessee  deposits not less than 20% of  the amount of tax, interest,  fee, penalty, or any other sum  payable under the provisions  of this Act, or furnish security  of equal amount in respect  thereof.

10. Penalty

Section Nature of Compliance by Assessee, Assessing Authority, etc. Limitation
158BFA/275 Passing penalty order:
(a) in a case where appeal is filed to  Commissioner (Appeals)/Tribunal Before the expiry of financial  year in which proceedings which  give rise to penalty are  completed, or within one year from the end of financial year in  which order of CIT (Appeals)/  Tribunal is received by Chief  Commissioner/Commissioner

Whichever period expires later

(b) in a case where relevant assessment or  other order is subject-matter of revision  under section 263 Within 6 months from the end of  the month in which revision  order is passed
(c) in any other case Before the expiry of the financial  year in which proceedings (in  course of which action for  imposing of penalty has been  initiated) are completed, or  within 6 months from the end of  the month in which penalty  action is initiated, whichever is  later

  11.      Partnership Firms

Section Nature of Compliance by Assessee, Assessing Authority, etc. Limitation
184(2)/(5) Furnishing of certified copy of partnership Along with return of income for  the assessment year in which  firm becomes first assessable.  No need to file the same with  returns for subsequent  assessment years unless change  in the constitution of the firm  has taken place

 12.       Survey, Search and Seizure

Section Nature of Compliance by Assessee, Assessing Authority, etc. Limitation
131(3) Retention of impounded books or documents by  Assessing Officer/Assistant Director Not more than 15 days  (exclusive of holidays) without  obtaining approval of Chief  Commissioner/Director General/  Commissioner/Director
132B Release of seized asset if the source of acquisition  is explained Application to be made to the  Assessing Officer for release of  the assets within 30 days from  the end of the month in which  the asset was seized
132(8) Retaining books of account or other documents  seized under section 132(1) or 132(1A) by  authorised officer 30 days from the date of order of  assessment under section  158BC(c)/153 unless period is  extended by specified authority
132(8A) Restraint order under section 132(3) The order shall remain in force  only upto 60 days from the date  of order
133A Retention of impounded books or documents by  an Income-tax Authority Not more than 15 days  (exclusive of holidays) without  obtaining approval of Chief  Commissioner/Director General

13. Advance Rulings

Section Nature of Compliance by Assessee, Assessing Authority, etc. Limitation
245Q(3) Withdrawal of the application for Advance Ruling Within 30 days from the date of  the application.
245R(5) Pronouncement of advance ruling by the Authority  for Advance Rulings. Within 6 months of the receipt  of application.

14. Recovery of Tax

Section Nature of Compliance by Assessee, Assessing Authority, etc. Limitation
Schedule II Part  1, Rule 3 Execution of certificate drawn up Not before 15 days after date of  service of notice under rule 2.
Schedule II Part  I, Rule 14 Filing of application by officer holding the sale  relating to recovery from defaulting purchasers Within 15 days from date of  resale.
Schedule II Part  II, Rule 25(5) Attachment of growing crop which does not admit  of being stored Not less than 20 days before it is  likely to be fit to be cut or  gathered.
Schedule II Part  II, Rule 40 Sale of movable property (other than property,  subject to speedy and natural decay and property  in relation to which expense of exceed its value) Not before 15 days from date on  which copy of sale proclamation  was affixed in TRO’s office  keeping it in custody is likely to.
Schedule II Part  III, Rule 55     Sale of immovable property without written  consent of defaulter   Not until expiry of 30 days from  date on which proclamation of  sale has been affixed on the  property or in the office of the  TRO, whichever is later.
Schedule II Part  III, Rule 57 Payment of full amount of purchase money on sale  of immovable property Within 15 days from date of sale
Schedule II Part  III, Rule 60 Application to set aside sale of immovable  property on deposit of specified sum Within 30 days from date of  sale.
Schedule II Part  III, Rule 61 Application to set aside sale of immovable  property on ground of non-service of notice Within 30 days from date of sale  or irregularity
Schedule II Part  III, Rule 62 Application for setting aside sale on ground that  defaulter had no saleable interest Within 30 days from date of  sale.
Schedule II Part  III, Rule 68B Sale of immovable property Within 4 years from the end of  the financial year in which the  order giving rise to demand has  become final under section 245-I  or under Chapter XX-C;  Can be extended by one year if  the immovable property is  required to be resold due to  highest bid being less than the  reserve price or in situations  mentioned in rule 57 or 58 or  where sale has been set aside  under rule 61;

Period of limitation to be  computed in the manner laid  down in rule 68B(2)

15. Provident Fund / Superannuation Fund / Gratuity Fund

Section Nature of Compliance by Assessee, Assessing Authority, etc. Limitation
Schedule IV  Part A, Rule 13 Appeal by employer against order of Chief  Commissioner or Commissioner refusing to  recognise or withdrawing recognition from a  provident fund Within 60 days of such order

 

Schedule IV  Part B, Rule 8 Appeal by employer against order of Chief  Commissioner or Commissioner refusing to  approve or withdrawing approval granted to a  superannuation fund Within 60 days of such order
Schedule IV  Part C, Rule 8 Appeal by employer against order of Chief  Commissioner or Commissioner refusing to  approve or withdrawing approval granted to a  gratuity fund Within 60 days of such order

 

 

See also  Procedure for Assessment of Search Cases-[Sections 153A, 153B and 153C]
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