The Income Tax Department has made changes in the year of 2025 timeline for issuing notices under different sections of the Income Tax Act. The purpose of these changes is to provide more clarity, quicker resolution, and less uncertainty for tax payers. No matter if you are a salaried worker, owner of a business, or a retiree, it is very important that you are aware of these changes in limits so that you are able to keep up with the law and avoid being fined.
📬 Why Are Income Tax Notices Issued?
An income tax notice is an official communication that the tax department sends for different reasons, including:
- Discrepancy of income or deductions
- Non-filing or late filing of returns
- Scrutiny or reassessment of income
- Demand for unpaid taxes or clarification
Every notice refers to a particular section of the Income Tax Act and specifies the deadline for response.
What’s New in 2025?
- In 2025, the government has shortened the time for issuance of notices to render the process more effective:
- Section 143(2) (Scrutiny Notice): It is to be issued in 3 months time from the last day of the financial year when the return is filed.
- Section 148 (Reassessment Notice): Issuing is allowed within 3 years from the end of the relevant assessment year. In case the income that should have been assessed exceeds ₹50 lakh, the period is 10 years.
- Section 142(1) (Inquiry Notice): Generally issued before scrutiny; the notice has no fixed time limit but it should be expected within a reasonable period.
- Section 144 (Best Judgment Assessment): This must be done within 12 months of the end of the financial year in which the return was filed.
Time Limit Summary Table
| Section | Purpose | Time Limit (2025) |
|---|---|---|
| 143(2) | Scrutiny of return | Within 3 months of FY end |
| 148 | Reassessment | 3 years (10 years if income > ₹50 lakh) |
| 142(1) | Inquiry before assessment | No fixed limit |
| 144 | Best Judgment Assessment | Within 12 months of FY end |
Final Thoughts
The changes in the timelines for the issuance of tax notices in 2025 are favorable to taxpayers. They increase accuracy and minimize the duration of doubt. Taxpayers have to be alert in checking their email and the income tax portal for any notices and to respond within the specified period. The timing of tax season can be stress-free if accurate returns are filed and records kept updated.
