Section 286
Section 286: time limit for completion of assessment, reassessment and recomputation
Section 286 sets the clock on how long the Assessing Officer has to actually pass an order once assessment, reassessment or recomputation proceedings are underway. It lists a range of proceeding types, each with its own trigger date and time limit, plus a set of exclusions (like transfer-pricing references, court stays and audits) that stop the clock temporarily.
This explanation is AI-assisted and pending review by our CA/CS team. It is general information, not professional advice - always cross-check against the bare law text above or talk to our tax team for guidance specific to your situation.
Standard time limits by type of proceeding
No order for the proceedings listed below can be made after the period specified has expired, calculated from the date shown:
| Proceeding / order | Time limit starts from | Time limit |
|---|---|---|
| Assessment order under section 270(10) or 271 | End of the financial year succeeding the relevant tax year | One year |
| Assessment order where an updated return is furnished under section 263(6) | End of the financial year in which the updated return was furnished | One year |
| Assessment order where return is furnished following an order under section 239(3)(b) | End of the financial year in which such return was furnished | One year |
| Assessment, reassessment or recomputation under section 279 | End of the financial year in which the section 280 notice was served | One year |
| Fresh assessment order (or fresh order under section 166) following an order setting aside/cancelling an assessment | End of the financial year in which the order is received/passed by the jurisdictional Principal Commissioner or Commissioner | One year |
| Assessment/reassessment revived under section 292 | End of the month in which it stands revived | One year |
| Assessment on a partner following the firm's assessment under section 279 | End of the month in which the firm's assessment order is passed | One year |
| Assessment/reassessment/recomputation to give effect to a finding/direction in an appellate, revisional or court order | End of the month in which the order is received/passed by the jurisdictional Principal Commissioner or Commissioner | One year |
| Order giving effect to an appellate/revisional order otherwise than by a fresh assessment, requiring verification or a hearing | End of the month in which the order is received/passed | One year |
| Order giving effect to an appellate/revisional order otherwise than by a fresh assessment (other cases) | End of the month in which the order is received/passed | Six months, extendable to nine months with approval |
| Modification of assessment under section 166 read with section 377 | End of the month in which the order under section 166 is received | Two months |
Extension where a transfer pricing reference is made
Where a reference is made to the Transfer Pricing Officer under section 166(1) to determine the arm's length price, the time limit for completing the assessment/reassessment (for the proceeding types listed as Sl. Nos. 1 to 5 in the Table) is extended by an additional twelve months.
The draft assessment order referred to in section 275 (the DRP process) must be made at any time up to this extended time limit.
Periods excluded from the time limit
In computing the time limit, the following periods are excluded from the count:
- Time taken in reopening a proceeding, or giving the assessee a fresh hearing, under section 244.
- Any period during which the assessment proceeding is stayed by a court order/injunction, until the certified copy of the order vacating the stay is received.
- The period between the Assessing Officer intimating a Schedule III contravention (or a section 270(11)(i) matter) and the order withdrawing approval or rescinding the notification being received.
- The period between the Assessing Officer directing an audit or inventory valuation under section 268(5) and the report being due (or, if challenged in court, the order on that challenge being received).
- The period between a reference to the Valuation Officer under section 269(1) and receipt of the Valuation Officer's report.
- Up to sixty days for a declaration process under section 375(1) and (3).
- The period an application is pending before the Board for Advance Rulings under section 383(1)/384.
- The period spent on an exchange-of-information reference under section 159 (capped at one year).
- The period between a reference to the jurisdictional Principal Commissioner or Commissioner under section 270(13) and receipt of the order under section 351(2)(ii)(A) or (B).
- The period a reference for an impermissible-avoidance-arrangement declaration is pending under section 274.
Minimum sixty-day buffer
If, after excluding the periods above, the remaining time available to the Assessing Officer is less than sixty days, it is extended to sixty days, and the overall time limit is deemed extended accordingly.
The same sixty-day buffer applies where the Transfer Pricing Officer's period is itself extended to sixty days under section 166(8) and the Assessing Officer's remaining time would otherwise be less than sixty days.
Frequently asked questions
How long does the Assessing Officer have to complete a regular assessment?
Generally one year from the end of the financial year succeeding the relevant tax year for an assessment order under section 270(10) or 271, as set out in the Section 286 table - though several exclusions can extend the effective deadline.
Does a transfer pricing reference extend the assessment deadline?
Yes - where a reference is made to the Transfer Pricing Officer under section 166(1), the time limit for the listed assessment/reassessment proceedings is extended by an additional twelve months.
What happens if very little time is left after excluding stay periods, audits, etc.?
Section 286(4) guarantees a minimum: if the remaining time after exclusions is less than sixty days, it is extended to sixty days.
Related sections
Want this applied to your actual filing, not just explained?
Check whether your assessment order is within the time limitLast updated 9 September 2026