Section 286 — Time limit for completion of assessment, reassessment and recomputation

(1) No order in respect of proceedings mentioned in column B of the Table
below shall be made after expiry of the period specified in the corresponding
entry in column D of the said Table and such period shall be calculated from the
date as mentioned in column C thereof.
TABLE
Sl.
No.
Nature of Proceedings or orders Date from which time
limit for completion is
to be calculated
Time limit for
completion
A B C D
1. Assessment order under section
270(10) or section 271.
End of the financial
year succeeding the rel-
evant tax year for which
assessment is made.
One year.
2. Assessment order under section
270(10) or 271, where an updat-
ed return of income is furnished
under section 263(6).
End of the financial
year in which such
updated return was
furnished.
One year.
3. Assessment order under section
270(10) or 271, where return
is furnished in consequence of
order under section 239(3)(b).
End of the financial
year in which such
return was furnished.
One year.
4. Assessment, reassessment or
recomputation order under
section 279.
End of the financial
year in which notice
under section 280 was
served.
One year.
5. Fresh assessment order or
fresh order under section 166
in pursuance to an order under
section 359, or 363, or 377, or
378, setting aside or cancelling
an assessment order or an order
under section 166.
End of the financial
year in which order
under section 359 or
363 is received by, or
order under section 377
or 378 is passed by, the
jurisdictional Principal
Commissioner or Com-
missioner.
One year.
6. Assessment or reassessment
which stands revived, as per
section 292.
End of the month in
which such assessment
or reassessment stands
revived.
One year.
Sl.
No.
Nature of Proceedings or orders Date from which time
limit for completion is
to be calculated
Time limit for
completion
A B C D
7. Assessment required to be made
in the hands of partner, in conse-
quence of an assessment made
on the firm under section 279.
End of the month in
which assessment order
in the case of firm is
passed.
One year.
8. Assessment, reassessment or
recomputation required to be
made on the assessee or any per-
son in consequence of or to give
effect to any finding or direction
contained in an order—
( i) under section 359 or 363
or 365(10), or 368, or 377
or 378; or
( ii) of any Court in a proceed-
ing otherwise than by way
of appeal or reference
under this Act.
End of the month in
which such order is
received, or passed, by
the jurisdictional Prin-
cipal Commissioner or
Commissioner.
One year.
9. Order giving effect to an order
under section 359 or 363 or
365(10) or 368 or 377 or 378, oth-
erwise than by making a fresh
assessment or reassessment or
fresh order under section 166,
where—
( i) verification of any issue by
way of submission of any
document by the assessee
or any other person is to
be carried out; or
( ii) an opportunity of being
heard is to be given to the
assessee.
End of the month in
which order under
section 359 or 363
or 365(10) or 368 6is
received, or order
under section 377 or
378 is passed, by the
jurisdictional Princi -
pal Commissioner or
Commissioner.
One year.
10. Order giving effect to an order
under section 359 or 363 or
365(10) or 368 or 377 or 378 oth-
erwise than by making a fresh
End of the month in
which order under
section 359 or 363 or
365(10) or 368 is
Six months, ex -
tendable to nine
months with
the approval of
Sl.
No.
Nature of Proceedings or orders Date from which time
limit for completion is
to be calculated
Time limit for
completion
A B C D
assessment or reassessment or
fresh order under section 166.
received by, or order
under section 377 or
378 is passed by, the
jurisdictional Principal
Commissioner or Com-
missioner.
authorities as per
section 2(62) and
(64).
11. Modification of assessment,
reassessment or recomputation
to give effect to the order passed
under section 166 read with
section 377.
End of the month in
which such order under
section 166 is received
by the Assessing Officer.
Two months.
61[(2)(a) Time limit for completion of any assessment or reassessment as provided in
sub-section (1) [Table: Sl. Nos. 1 to 5], in a case where reference is made to the Transfer
Pricing Officer for determining the arm’s length price under section 166(1), shall be
extended by an additional period of twelve months.
(b) In terms of provisions of sub-section (1) [Table: Sl. Nos. 1 to 5] and this sub-sec-
tion, the draft of the proposed order of assessment referred to in section 275 shall be
made at any time up to the time limit of assessment, reassessment or recomputation
referred to in the said Table and this sub-section.]
(3) For the purposes of this section, in computing the time limit for completion, the
following period shall be excluded,—
( a) the time taken in reopening the whole or any part of the proceeding on
request of the assessee or in giving an opportunity to the assessee to be
re-heard under section 244; or
( b) the period commencing on the date on which stay on assessment pro -
ceeding was granted by an order or injunction of any court and ending
on the date on which certified copy of the order vacating the stay was
received by jurisdictional Principal Commissioner or Commissioner; or
( c) the period commencing from the date on which the Assessing Officer
intimates the Central Government or the prescribed authority, the
contravention of the provisions of Schedule III (Table: Sl. Nos. 23, 24,
25) or section 270(11)(i), and ending with the date on which the copy of
the order withdrawing the approval or rescinding the notification, as the
61. Substituted by the Finance Act, 2026, w.e.f. 1-4-2026. Prior to its substitution, sub-section
(2) read as under :
“(2) Time limit for completion of any assessment or reassessment as provided in sub-section
(1), in a case where reference is made to the Transfer Pricing Officer for determining the
arm’s length price under section 166(1), shall be extended by an additional period of twelve
months.”
case may be, under those provisions is received by the Assessing Officer;
or
( d) the period commencing from the date on which the Assessing Officer
directs the assessee to get his accounts audited or inventory valued under
section 268(5) and—
( i) ending with the last date on which the assessee is required to furnish
a report of such audit or inventory valuation under that section; or
( ii) where such direction is challenged before a court, ending with the
date on which the order setting aside such direction is received by
the Principal Commissioner or Commissioner; or
( e) the period commencing from the date on which the Assessing Officer
makes a reference to the Valuation Officer under section 269(1) and end-
ing with the date on which the report of the Valuation Officer is received
by him; or
( f) the period (not exceeding sixty days) commencing from the date on which
the Assessing Officer received the declaration under section 375(1) and
ending with the date on which the order under section 375(3) is made
by him; or
( g) the period commencing from the date on which an application is made
before the Board for Advance Rulings under section 383(1) and ending
with the date on which the order either rejecting the application or the
advance ruling pronounced by it, is received by the jurisdictional Principal
Commissioner or Commissioner under section 384(5) or (8), as the case
may be; or
( h) the period commencing from the date on which a reference or first of the
references for exchange of information is made by an authority competent
under an agreement referred to in section 159 and ending with the date
on which the information requested is last received by the jurisdictional
Principal Commissioner or Commissioner, or one year, whichever is less;
or
( i) the period commencing from the date on which a reference for declara-
tion of an arrangement to be an impermissible avoidance arrangement is
received by the jurisdictional Principal Commissioner or Commissioner
under section 274(1) and ending on the date on which a direction under
sub-section (3) or (6) or an order under sub-section (5) of the said section
is received by the Assessing Officer; or
( j) the period commencing from the date on which the Assessing Officer
makes a reference to the jurisdictional Principal Commissioner or
Commissioner under section 270(13) and ending with the date on which
copy of the order under section 351(2)( ii)(A) or (B), is received by the
Assessing Officer.
(4) Where immediately after exclusion of the period as mentioned in sub-section
(3), the remaining period for completion available to the Assessing Officer, as
specified in sub-section (1), for making an order of assessment, reassessment or
recomputation, is less than sixty days, such remaining period shall be extended to
sixty days and the aforesaid time limits for completion shall be deemed to have
been extended accordingly.
(5) Where the period available to the Transfer Pricing Officer is extended to sixty
days as per section 166(8) and the remaining period for completion available to
the Assessing Officer under this section, for making an order of assessment, reas -
sessment or recomputation, is less than sixty days, such remaining period shall be
extended to sixty days and the aforesaid time limit for completion shall be deemed
to have been extended accordingly.
(6) Where a proceeding before the Interim Board for Settlement abates under sec-
tion 245HA of the Income-tax Act, 1961 (43 of 1961) and the remaining period of
limitation available to the Assessing Officer under this section for making an order
of assessment, reassessment or recomputation, after the exclusion of the period
under section 245HA(4) of the Income-tax Act, 1961 (43 of 1961), is less than one
year, such remaining period shall be deemed to have been extended to one year;
and for the purposes of determining the period of limitation under sections 282,
287, 288 and 296 and for the purposes of payment of interest under section 437,
this sub-section shall also apply accordingly.
(7) In a case where the remaining time period for making an order of regular
assessment or reassessment, after excluding the time period specified in sub-section
(3)(j), ends before the end of the month, the remaining period shall be extended to
the end of such month, and the specified time limit for completion shall be deemed
to have been extended accordingly.
(8) For the purposes of this section and section 283, where by an order referred to
in entry in sub-section (1) (Table: Sl. No. 8.A)—
( i) any income is excluded from the total income of the assessee for a tax
year, then, an assessment of such income for another tax year shall be
deemed as one made in consequence of or to give effect to any finding
or direction contained in the said order; or
( ii) any income is excluded from the total income of one person and held to
be the income of another person, then, an assessment of such income
on such other person shall be deemed as one made in consequence of
or to give effect to any finding or direction contained in the said order,
if such other person was given an opportunity of being heard before the
said order was passed.