The era has accepted all digital processes to be a big convenience and a time-saver. One such example is income tax records which can effortlessly be maintained by spending less or no money in the process. However, the taxpayer must mark the time limits for each income tax assessment before storing and filing the previous documents.
Mostly, the deadline to file an ITR of any financial year is 31 July of the following financial year (except the ones whose accounts need to be audited). For instance, the ITR for the financial year 2023-24 needs to be filed before or on 31 July 2024. On the other hand, the group that is required to be audited shall furnish the ITR by 31 October 2024.
Note: “The deadline for filing the income tax audit report has been extended to November 15, 2024. Read Circular“
On filing the returns, a ‘scrutiny notice’ is served to the taxpayer as per the directions under section 143 (2) of the Income Tax Act 1961. The notice can be received by the taxpayer within six months from the end of the assessment year. For Example, the Scrutiny Notice for Financial Year 2023-24 will be received before 30 September 2024. Or he may get the notice of re-assessment from the department directed under section 147 of ITA 1961.
Time Limit for Receiving Re-assessment Notice
Notice can be issued within the 3 years from the end of the relevant assessment year. If tax evasion is 50 laks or more then notice an issue within 10 years from the end of the relevant assessment year.
Important: All About Income Tax Scrutiny Notice & How to Respond Fast?
If we talk about taxable foreign assets, the re-assessment notice may reach the doors within 16 years from the end of a particular assessment year. If income has escaped assessment due to the failure to file a return of income, then the time limit for reopening the assessment will be six years.
Previously saved records are of great help when you are dealing with Long Term Capital Gains (LTCG) tax. While introducing long-term capital gains tax (LTCG) on stocks and mutual funds, you will need these records. People often find themselves stuck in uncertain notices from old assessments.
