What are the recent amendments related to reassessment proceedings?

The Finance Act 2021 introduced significant changes to the reassessment provisions, effective from April 1, 2021. The key amendments include: (1) Reduction of the time limit for initiating reassessment to 3 years (from 6 years) if income has escaped assessment, (2) Introduction of an ‘approval’ mechanism where the Assessing Officer needs to obtain prior approval from specified authorities before issuing a reassessment notice, and (3) Prohibition of reassessment proceedings where the original assessment was based on detailed scrutiny and the taxpayer had disclosed all relevant facts.