Assessment of Tax Time Limit Increased !

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Almost all  time limits for assessment of tax were decreased earlier by three months . So , A.Os had time for assessment of tax  up to December of the year concerned. This lowering of time to complete assessment under various provisions under Income Tax Act was done with the  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  for assessment of tax.

New Time Limit for Assessment of Tax

Time limits have been provided for completion of assessment or reassessment under budgetAssessmentsection 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 of  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 :

Proceeding u/s

Current time allowed

  New Time Limit

Sec. 14321 months from the end of the A.Y24 months
Section 143 with 92CA (transfer pricing33 months from the end of the A.Y26 months
assessment u/s 1489 months from the end of the F.Y. in which notice issued12 months
Sec 148 along with Sec 92CA21 months from the end of the F.Y. in which order received24 months
250 or 254 or 263( set aside case by appellate authorities)9 months from the end of the F.Y. in which notice issued12 months
Section 250 or 254 or 263, and 92CA21 months from the end of the F.Y. in which order received24 months

The new time limit for assessment of tax is effective from 01/07/2012 .

This is really good news for Assessing Officers.