Section 149 – Time Limit for Notice Act

Section 149 of the income tax act cover provisions regarding the time limit for issue of notice. Here, we will cover section 149 as well as its sub-sections.

Section 149(1) of the Indian Income Tax Act

Under section 149(1), no notice u/s 148 shall be issued for the relevant AY if;

  1. Four years have lapsed since the end of the relevant AY unless the case falls under clause (b) or (c);
  2. 4 years, but not more than 6 years, have elapsed from the end of the relevant AY; unless the income chargeable to tax which has escaped assessment amounts to is likely to amount to Rs. 1 lakh or more for that year;
  3. 4 years but not more than 16 years have elapsed from the end of the relevant AY, unless the income from any asset (including financial interest in any entity) located outside India, chargeable to tax, has escaped assessment.

Explanation:

While determining income chargeable to tax, which has escaped the assessment; the provisions of explanation of section 147 shall apply as they apply for the purposes of that section.

Section 149(2) of the Income Tax Act

As per section-149(2), the provisions of section-149(1) shall be subject to the provisions of section 151.

Section 149(3) of the Income Tax Act

Section 149(3) provides that, where a person to whom the notice u/s 148 is to be issued, is a person treated as agent of a non-resident u/s 163 and; the assessment, reassessment or recomputation to be made in pursuit of the notice is to be made on him as an agent of such non-resident, the notice shall not be issued after the expiry of 6 years from the end of relevant AY.

In simple words, no notice shall be issued after the expiry of 6 years from the end of the relevant AY to a person, who is treated as an agent of a non-resident u/s 163 and the notice u/s 148 has been issued to him.

The provisions of section 149(1) & 149(3) shall also apply for any AY commencing on or before the 1st April 2012.

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