Section 286 Income Tax Act 2025: What Is the Time Limit for Completing Assessment and Reassessment?
Section 286 fixes statutory deadlines for completion of assessments, reassessments, recomputations, fresh assessments and certain orders giving effect to appellate or judicial decisions. The correct deadline depends on the nature of proceedings and the statutory starting date.
What does Section 286 provide?
Section 286(1) prohibits passing an order after the time limit prescribed for that class of proceedings. Its table identifies the relevant proceeding, the date from which the limitation period is calculated and the permitted period. The starting point is not always the date on which a notice was issued or an appeal was decided.
Section 286 must be distinguished from Section 282, which governs limitation for issuing reassessment notices. A notice issued in time does not, by itself, establish that the eventual reassessment order was passed within the separate completion deadline.
Section 286(1): What are the principal deadlines?
| Proceeding | Starting point | Time allowed |
|---|---|---|
| Assessment under Section 270(10) or 271 | End of the financial year succeeding the relevant tax year | One year |
| Assessment where an updated return is filed under Section 263(6) | End of the financial year in which updated return was filed | One year |
| Assessment following a return furnished pursuant to Section 239(3)(b) | End of financial year in which return was filed | One year |
| Assessment, reassessment or recomputation under Section 279 | End of financial year in which Section 280 notice was served | One year |
| Fresh assessment or fresh Section 166 order after specified setting-aside orders | End of financial year in which specified appellate order is received or judicial order passed by relevant authority | One year |
| Assessment or reassessment revived under Section 292 | End of month in which proceedings revive | One year |
| Partner assessment following assessment of firm under Section 279 | End of month in which firm's assessment order is passed | One year |
| Assessment or reassessment giving effect to qualifying findings or directions | End of month in which qualifying order is received or passed by relevant authority | One year |
| Appeal-effect order requiring verification or hearing, without fresh assessment | End of month of relevant order's receipt or passing | One year |
| Other appeal-effect order without fresh assessment | End of month of relevant order's receipt or passing | Six months, extendable to nine months with prescribed approval |
| Modification to give effect to Section 166 order read with Section 377 | End of month in which Section 166 order is received by Assessing Officer | Two months |
This is a practical summary of the table in Section 286(1), not a substitute for its exact wording and cross-references. The statutory exclusions and extensions below may change the final date.
When can the completion period be extended or excluded?
Transfer pricing references: Section 286(2)
Where a reference is made to the Transfer Pricing Officer for determining arm's length price under Section 166(1), Section 286(2)(a) provides an additional twelve months for the proceedings specified in table entries 1 to 5. Section 286(2)(b), substituted by the Finance Act, 2026, addresses the timing of the draft proposed assessment order under Section 275.
Excluded periods: Section 286(3)
Specified intervals are excluded when computing limitation. Examples include time attributable to a court-ordered stay, special audit or inventory valuation, valuation references, qualifying information-exchange requests, advance-ruling proceedings and other statutory references. Each exclusion is subject to its own wording and conditions.
Remaining-period protections
Section 286 also contains rules for minimum remaining periods after specified exclusions and for month-end adjustments in prescribed circumstances. In particular, Section 286(7) addresses a remaining period after the exclusion in Section 286(3)(j) that would otherwise end before the end of a month. Always calculate the deadline using all applicable subsections, rather than simply adding one year to a notice date.
Findings and directions: Section 286(8)
Section 286(8), also relevant to Section 283, addresses income shifted between tax years or between persons as a consequence of a qualifying finding or direction. Where income is attributed to another person, the provision includes an opportunity-of-hearing condition.
Relevant statutory terms
Practical examples of limitation
Frequently asked questions
Is the time limit for reassessment always one year from the notice?
No. The normal period is one year from the end of the financial year in which the Section 280 notice was served, subject to extensions and exclusions.
Does Section 286 set the last date for issuing a reassessment notice?
No. Section 282 addresses notice limitation; Section 286 governs completion of the resulting proceedings.
Can a transfer pricing reference extend the deadline?
Yes. Section 286(2)(a) permits an additional twelve months for specified assessments and reassessments where the required reference under Section 166(1) is made.
Does the 2025 Act govern all pending older reassessments?
No. The commencement and saving provisions, including Section 536, must be considered. Reassessment for earlier tax years may continue under the 1961 Act.
Official legal sources
Updated: 11 November 2026. This article provides general legal information. The precise limitation date depends on the applicable statutory version, relevant order and service dates, exclusions, extensions and transition provisions.