Time Limit for Regular Assessment (Section 143(3))

• The assessment must be completed within 9 months from the end of the relevant assessment year.
  
• For assessment year 2023–24, the time limit is December 31, 2024.
  
• This applies to scrutiny assessments initiated under section 143(2).
  
• The period may be extended in special cases or if extended by law.
  
• Regular assessments examine the correctness and completeness of returns.
  

Time Limit for Best Judgment Assessment (Section 144)

• If the assessee fails to comply with notices or requirements, a best judgment assessment is made.
  
• The same time limit of 9 months from the end of the assessment year applies.
  
• The assessing officer proceeds based on available information and records.
  
• Delay in submission of details or non-cooperation may lead to this action.
  
• No further extension is allowed unless provided by a specific notification.
  

Time Limit for Reassessment (Section 147 and 148)

• Reassessment is initiated when income has escaped assessment.
  
• Notice under section 148 can be issued within 3 years from the end of the relevant assessment year.
  
• In cases involving income escaping ₹50 lakh or more, the limit extends to 10 years.
  
• Reassessment must be completed within 12 months from the end of the financial year in which notice was served.
  
• All timelines are subject to conditions specified in the amended provisions.
  

Time Limit for Transfer Pricing Cases

• If the case involves an international transaction requiring a reference to the Transfer Pricing Officer, additional time is granted.
  
• The time limit for assessment is extended by 12 months.
  
• For such cases, scrutiny assessment may extend to a total of 21 months.
  
• Transfer pricing adjustments may significantly impact the tax liability.
  
• Companies must keep detailed documentation to meet this extended deadline.
  

Exclusions and Exceptions

• Time periods are excluded for stay orders, reassessment proceedings, and court interventions.
  
• Delay due to audit objections, tribunal orders, or cross-border information requests may extend timelines.
  
• In case of search or seizure (under section 132), assessment must be completed within 12 months from the end of the relevant financial year.
  
• Amendments by Finance Acts may revise or reduce prescribed timelines.
  

The final order must be issued within the statutory time limit or becomes invalid.