Proposal to reduce the time limit under Income Tax
Proposal to reduce the time limit under Income Tax, by FM Nirmala Sitharaman in Union Budget 2021 are tabulated below:
| Compliance | Before Budget 2021 | After Budget 2021 |
| Revised Return | Upto the end of relevant A.Y. (i.e. 31st March) | Reduced by 3 months (i.e. 31st December) |
| Belated Return* | Upto the end of relevant A.Y. (i.e. 31st March) | Reduced by 3 months (i.e. 31st December) |
| Intimation u/s 143(1) | 1 year from the end of F.Y. in which return was filed (i.e. 31st March) | 9 months from the end of F.Y. in which return was filed. (i.e. 31st December) |
| Notice of Scrutiny u/s 143(2) | 6 months from the end of F.Y. in which return was filed (i.e. 30th September) | 3 months from the end of F.Y. in which return was filed (i.e. 30th June) |
| Scrutiny Assessment u/s 143(3) or Best Jugdement Assessment u/s 144 | 12 months from the end of relevant A.Y. (i.e. 31st March) | 9 months from the end of relevant A.Y. (i.e. 31st December) |
*Penalty u/s 234F of Rs. 10,000 is out of the picture now, but no discussion in Union Budget 2021
These amendments are proposed with effect from 1st April 2021.
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