Income Tax Notice Time Limit: Section 143(2) & Assessment Deadlines

Time limits are the one part of income tax assessment that cut both ways. You have a deadline to reply. The department has a deadline to issue the notice and another to complete the assessment. Miss yours and you lose the right to be heard. Miss theirs and the proceeding itself becomes vulnerable.

This guide sets out every income tax notice and assessment time limit that matters: the three-month deadline for a scrutiny notice, the limits for completing an assessment, the reassessment periods, and how to calculate each one from your own filing date.

It covers both statutes. The Income-tax Act, 2025 came into force on 1 April 2026, but the 1961 Act continues to govern AY 2026-27 and earlier — so both sets of deadlines are live in 2026, and which applies depends on the year your notice relates to.

For the underlying process, see our guides to income tax scrutiny assessment and the scrutiny notice under Section 143(2).

Quick Details: Income Tax Notice and Assessment Time Limits

What Is the Income Tax Scrutiny Notice Time Limit?

Three months from the end of the financial year in which the return was furnished.

That single sentence is the whole rule, and it is unchanged across both statutes.

Under the 1961 Act it appeared in the proviso to Section 143(2). Under the 2025 Act it appears in Section 270(9), which provides that no notice under sub-section (8) shall be served on the assessee after the expiry of three months from the end of the financial year in which the return is furnished.

Two details decide the calculation, and both are commonly got wrong.

The clock starts from the financial year of filing, not the assessment year. It does not matter which year's income the return relates to. What matters is the financial year in which you actually filed it.

It runs from the end of that financial year, not from the filing date. A return filed in April and a return filed in the following March both attract the same deadline, because both fall in the same financial year.

How to Calculate Your Section 143(2) Time Limit

Work it in three steps.

1. Identify the date you filed the return.
2. Identify the financial year that date falls in. Financial years run 1 April to 31 March.
3. Add three months to 30 June following the end of that financial year — in practice, the deadline is 30 June of the year after that financial year ends.

The pattern is consistent: every return filed within a single financial year shares one notice deadline, falling on 30 June after that year closes.

A practical consequence worth noting. Filing late does not extend the department's window in the way many taxpayers assume — a belated return filed in December still falls in the same financial year as one filed in July, so both attract the same 30 June deadline.

Why the Income Tax Notice Time Limit Matters

A late notice is legally vulnerable. Service beyond the statutory period goes to the validity of the proceeding itself, not merely to its merits. It is one of the few defences that can end a matter outright.

The objection has to be taken early. Raising limitation at the first opportunity, on record, is materially stronger than raising it after you have participated in the assessment without demur.

It tells you when you are safe. Once the three-month window closes without a notice, your return cannot be taken into ordinary scrutiny for that year. Only the separate reassessment machinery remains available, and that has its own higher threshold.

Your own deadlines are equally hard. The reply period stated in a notice is not advisory. Letting it lapse permits a best judgment assessment under Section 144 of the old Act or Section 271 of the new Act.

Assessment completion limits constrain the department too. An officer cannot keep a proceeding open indefinitely; the order must be passed within the prescribed period.

Key Time Limits Under the Income Tax Act

Intimation

Processing of the return must result in an intimation within nine months from the end of the financial year in which the return was furnished. Section 143(1) of the 1961 Act; Section 270(1) of the 2025 Act.

Scrutiny Notice

Three months from the end of the financial year in which the return was furnished. Proviso to Section 143(2) of the 1961 Act; Section 270(9) of the 2025 Act. Unchanged in substance between the two.

Assessment Order

Under the 1961 Act, for AY 2019-20 onwards, twelve months from the end of the assessment year. Under the 2025 Act, one year from the end of the financial year succeeding the relevant tax year.

Reassessment

Reopening operates on substantially longer periods than ordinary scrutiny, extending several years from the end of the relevant year, with the longer outer limit reserved for cases above a prescribed monetary threshold.

Assessment Completion Time Limits

The department's deadline to pass the order, not merely to issue the notice.

Under the 2025 Act, the general rule is one year from the end of the financial year succeeding the relevant tax year, with the limitation for block assessments following a search extended to eighteen months.

Two qualifications matter in practice. Where an updated return is filed, the completion period runs from the end of the financial year in which that updated return was furnished, not the original. And in cases routed through the Dispute Resolution Panel, the general limit applies only up to the draft assessment order — the stages after that run on their own separate timelines.

Common Mistakes to Avoid

Counting from the Assessment Year

The three-month period runs from the end of the financial year of filing, not the assessment year. Confusing the two produces a deadline a full year adrift and a wasted objection.

Counting from the Filing Date

The period runs from the end of the financial year, not from the day you filed. A return filed in April and one filed the following March share the same deadline.

Raising Limitation Late

Participating fully in an assessment and objecting to limitation only after an adverse order substantially weakens the point. Take it on record at the first opportunity.

Confusing Notice Types

Reassessment notices operate on entirely different and much longer periods. Applying the three-month scrutiny rule to a reassessment notice leads to a defence that does not exist.

Practical Examples or Use Cases

A notice served two months late. A taxpayer filed on 12 August 2024, within FY 2024-25. The limitation expired on 30 June 2025. A notice served in September 2025 was out of time, and the objection was recorded in the first response rather than after the assessment had run its course.

A belated filer who assumed extra time. A professional filed a belated return in December 2025, expecting the department's window to run from that date. It did not — the return fell in FY 2025-26, so the deadline was 30 June 2026, the same as for a July filer.

An updated return that reset the clock. A business filed an updated return to correct an omission. The assessment completion period ran from the end of the financial year in which the updated return was furnished, giving the department materially longer than the original filing would have allowed.

Comparison Section

Scrutiny Notice Time Limit vs Reassessment Notice Time Limit

Latest Updates, Rules, and Regulations

The three-month rule survives the new Act unchanged. Section 270(9) of the Income-tax Act, 2025 reproduces the substance of the proviso to Section 143(2) of the 1961 Act. Taxpayers do not need to recalculate scrutiny deadlines because of the change in statute.

Section numbering has changed. Return processing moves to Section 270(1), the scrutiny notice to Section 270(8), the limitation to Section 270(9), the assessment order to Section 270(10), and best judgment assessment from Section 144 to Section 271.

Both statutes are live during 2026. Under the saving provision in Section 536 of the 2025 Act, the repealed Act continues to govern proceedings relating to earlier years. FY 2025-26 income is assessed as AY 2026-27 under the 1961 Act; FY 2026-27 income is assessed as Tax Year 2026-27 under the 2025 Act. Most notices issued during 2026 therefore still run under Section 143(2).

Block assessment limitation extended. For search cases, the period has been extended from twelve to eighteen months, running from the end of the quarter in which the last authorisation was executed.

Verify before acting: old-versus-new section mapping in published commentary is inconsistent, and several circulated mapping tables conflict with the statutory text. The Section 270 and 271 references above are drawn from the Act itself. Confirm reassessment and limitation section numbers with your tax advisor before relying on them, and confirm the completion deadline applicable to your specific year.

Frequently Asked Questions

What is the time limit for an income tax scrutiny notice? Three months from the end of the financial year in which the return was furnished, under the proviso to Section 143(2) of the 1961 Act and Section 270(9) of the 2025 Act.

What is the Section 143(2) time limit for a return filed in July 2025? The return falls in FY 2025-26, which ends on 31 March 2026, so the notice must be served by 30 June 2026.

Does filing a belated return give the department more time? No. A belated return filed in December falls in the same financial year as one filed in July, so both attract the same notice deadline of 30 June following that financial year.

What is the time limit to complete an income tax assessment? Under the 1961 Act, twelve months from the end of the assessment year for AY 2019-20 onwards. Under the 2025 Act, one year from the end of the financial year succeeding the relevant tax year.

What happens if a scrutiny notice is issued after the time limit? It is open to challenge on the ground of limitation, which goes to the validity of the proceeding itself. The objection should be raised on record at the first opportunity.

How long do I get to reply to an income tax notice? The notice states the deadline, commonly around 15 days. An adjournment request can be filed on the income tax portal before the window expires.

Is the time limit different under the new Income-tax Act 2025? No, not in substance. Section 270(9) preserves the same three-month period. Only the section number has changed.

What is the time limit for a reassessment notice? Reassessment operates on substantially longer periods than ordinary scrutiny, running several years from the end of the relevant year, with the longest outer limit reserved for cases above a prescribed monetary threshold.

Does an updated return change the assessment time limit? Yes. Where an updated return is filed, the completion period runs from the end of the financial year in which that updated return was furnished rather than the original return.

When does the intimation after processing have to be issued? Within nine months from the end of the financial year in which the return was furnished, under Section 143(1) of the 1961 Act and Section 270(1) of the 2025 Act.

Conclusion

The income tax scrutiny notice time limit is three months from the end of the financial year in which you filed — a single rule that has survived the move from the 1961 Act to the 2025 Act unchanged, appearing now in Section 270(9) instead of the proviso to Section 143(2).

Calculate it from the financial year of filing, not the assessment year and not the filing date itself. Every return filed within one financial year shares a deadline of 30 June after that year closes.

If you have a notice in hand, check that date first. A notice served outside the window is vulnerable on limitation, and the objection is strongest when recorded at the first opportunity rather than after an adverse order. If the notice is within time, the deadline that now matters is yours — the reply period stated in the notice, which permits a best judgment assessment if it lapses.

Your next step is to compare the date of service against the table above, then move to the substantive reply. Our guide on how to reply to a scrutiny notice under Section 143(2) sets out the process, and our guide to income tax scrutiny assessment covers the proceeding as a whole.

Need the deadline checked on a notice you have received? The StartupFlora team assists businesses and professionals across India with scrutiny notices, limitation objections and assessment representation. Talk to our team before the reply window closes.