The Statutory Brief

IT Act 1961 → 2025 / Section 153

Returns & assessment

Section 153 → Section 286

Time limits for completing assessment and reassessment

Section 153 of the old Income-tax Act, 1961 · new section 286 under the Income-tax Act, 2025

New reference Section 286

Income-tax Act, 1961Section 153

  • Assessment: 12 months from the end of the assessment year
  • Reassessment: 12 months from end of FY in which 148 notice served
  • Extensions for TP reference, search cases, etc.

Applies to FY 2025-26 (AY 2026-27) and earlier years.

Income-tax Act, 2025Section 286

  • Time limits set out in a table in section 286
  • Assessment: one year from end of the FY succeeding the tax year (same end date as before)
  • Updated return: one year from end of FY in which it was filed
  • Reassessment: one year from end of FY in which section 280 notice served

Applies from tax year 2026-27 (from 1 April 2026).

What changed

Renumbered and tabulated; effective time limits unchanged. The Finance Act 2026 added section 286(2)(b) on draft-order timing in transfer pricing reference cases.

Practice notes

  • A transfer pricing reference extends the limit by 12 months (section 286(2)); stay orders and other excluded periods are in section 286(3).

These are summaries, not the statutory text. Read the bare Act for both sections on the Income Tax Department's official site, which also has a side-by-side comparison utility.

Frequently asked

What is the time limit for scrutiny assessment under the new Income Tax Act 2025?

Section 286: one year from the end of the financial year following the tax year (e.g. tax year 2026-27 → 31 March 2029).

What is section 153 called in the new Income-tax Act, 2025?

Section 153 of the Income-tax Act, 1961 corresponds to Section 286 of the Income-tax Act, 2025, which applies from 1 April 2026 (tax year 2026-27).

What changed in section 153 under the new Income Tax Act?

Renumbered and tabulated; effective time limits unchanged. The Finance Act 2026 added section 286(2)(b) on draft-order timing in transfer pricing reference cases.

Is section 153 still applicable for FY 2025-26?

Yes. Income of FY 2025-26 (AY 2026-27) and earlier years is governed by section 153 of the 1961 Act. Section 286 of the 2025 Act applies from tax year 2026-27.

Related sections

143→270Processing of returns (intimation) and scrutiny assessment147→279Income escaping assessment: power to assess or reassess140B→267Tax and additional tax on updated returns (ITR-U)