Almost all Â time limits for assessment of tax were decreased earlier by three months . So , A.Os had time for assessment of tax Â up to December of the year concerned. This lowering of time to complete assessment under various provisions under Income Tax Act was done with theÂ intention of the tax administrator that the Assessing Officer will devote the three months of a fiscal year in collection work. Good sense perhaps prevailed over the government as they have seen the futility of the time reduction exercise Â for assessment of tax.
New Time Limit for Assessment of Tax
Time limits have been provided for completion of assessment or reassessment under section 143(3), 147, 153A, 153C, etc. Further, these time limits get extended if a reference is made under section 92CA to the Transfer Pricing Officer during the course of assessment/reassessment proceedings. Finance Bill 2012-13 has proposed to amend the aforesaid sections, i.e., 153 and 153B to provide that the time limits for completion ofÂ assessments and reassessments shall respectively be increased by three months. The existing period and the new extended period for completion of pending proceedings and subsequent proceedings under :
Current time allowed
Â New Time Limit
|Sec. 143||21 months from the end of the A.Y||24 months|
|Section 143 with 92CA (transfer pricing||33 months from the end of the A.Y||26 months|
|assessment u/s 148||9 months from the end of the F.Y. in which notice issued||12 months|
|Sec 148 along with Sec 92CA||21 months from the end of the F.Y. in which order received||24 months|
|250 or 254 or 263( set aside case by appellate authorities)||9 months from the end of the F.Y. in which notice issued||12 months|
|Section 250 or 254 or 263, and 92CA||21 months from the end of the F.Y. in which order received||24 months|
The new time limit for assessment of tax is effective from 01/07/2012 .
This is really good news for Assessing Officers.