Revised IT Section 149: Time limit for notice

As per Clause 38 of the Finance Bill 2021, Section 149 of the Income Tax relating to Time limit for notice, is to be substituted,  in view of proposed reduction in time limit for re-opening of assessment proceedings.

Proposed/ Revised IT Section 149: Time limit for notice

(1) No notice under section 148 shall be issued for the relevant assessment year,-

(a) if three years have elapsed from the end of the relevant assessment year, unless the case falls under clause (b);

(b) if three years, but not more than ten years, have elapsed from the end of the relevant assessment year unless the Assessing Officer has in his possession books of accounts or other documents or evidence which reveal that the income chargeable to tax, represented in the form of asset, which has escaped assessment amounts to or is likely to amount to fifty lakh rupees or more for that year:

Provided that no notice under section 148 shall be issued at any time in a case for the relevant assessment year beginning on or before 1st day of April, 2021, if such notice could not have been issued at that time on account of being beyond the time limit specified under the provisions of clause (b) of sub-section (1) of this section, as they stood immediately before the commencement of the Finance Act, 2021:

Provided further that the provisions of this sub-section shall not apply in a case, where a notice under section 153A, or section 153C read with section 153A, is required to be issued in relation to a search initiated under section 132 or books of account, other documents or any assets requisitioned under section 132A, on or before the 31st day of March, 2021:

Provided also that for the purposes of computing the period of limitation as per this section, the time or extended time allowed to the assessee, as per show-cause notice issued under clause (b) of section 148A or the period during which the proceeding under section 148A is stayed by an order or injunction of any court, shall be
excluded:

Provided also that where immediately after the exclusion of the period referred to in the immediately preceding proviso, the period of limitation available to the Assessing Officer for passing an order under clause (d) of section 148A is less than seven days, such remaining period shall be extended to seven days and the period of limitation in sub-section (1) shall be deemed to be extended accordingly.

(2) The provisions of sub-section (1) as to the issue of notice shall be subject to the provisions of section 151.

Related Posts:

Finance Act, 2021 notified by Govt., post President’s Ascent (Download pdf)

Union Budget India 2021-22/ Finance Bill, 2021 (Download PDF Copy)

Key Proposals on Direct/ Indirect Taxes: Budget 2021

ITR filing exemption for Senior Citizens (75 or above) proposed in Budget 2021

0.1% TDS on Purchase of Goods above 50 lacs proposed in Budget 2021 

Enhanced Tax Audit Exemption limit of Rs. 10 crore for Digital Turnover, proposed in Budget 2021

Time Limit Reduced for Re-opening Income Tax Proceedings proposed in Budget 2021

ICAI’s Pre Budget Memorandum 2021 on Direct Taxes/ International Taxation

CBDT Updates (Income Tax)
Income Tax Circulars, Instructions, Notifications, Orders, Press Releases, etc. issued by the Central Board of Direct Taxes (CBDT) in different years:
CBDT Circulars: 2021, 2020, 2019, 2018, 2017, 2016, 2015
CBDT Instructions: 2021, 2020, 2019, 2018, 2017, 2016, 2015
CBDT Notifications: 2021, 2020, 2019, 2018, 2017, 2016, 2015
CBDT Orders: 2021, 2020, 2019, 2018, 2017
CBDT Press Releases: 2021, 2020, 2019, 2018, 2017, 2016, 2015
Note: For Official/ updated copy, please visit the Income Tax Deptt. website.

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