Section 153 → Section 172
Time limit for completion of assessments and reassessments
Quick Answer
Section 153 of the Income Tax Act, 1961 (Time limit for completion of assessments and reassessments) corresponds to Section 172 of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 153
In the 1961 statute, Section 153 deals with time limit for completion of assessments and reassessments. Deadline by which the AO must finish the assessment (usually 9-12 months from end of AY).
From 1st April 2026, the same subject sits at Section 172 of the Income-tax Act, 2025 — retained and renumbered as Section 172 of the Income-tax Act, 2025. Retained. Tightened timelines to ensure taxpayers aren't kept in limbo for years.
For Section 153, the practical impact is rated High. Administrative deadline for the department.
Sec 153
Provision Summary
Deadline by which the AO must finish the assessment (usually 9-12 months from end of AY).
Sec 172
Provision Summary
Retained. Tightened timelines to ensure taxpayers aren't kept in limbo for years.
Key Changes & Highlights
- Exclusion of time spent in DRP or stay orders from courts clearly defined.
Frequently Asked Questions
What is Section 153 of the Income Tax Act, 1961 about?
Section 153 of the Income Tax Act, 1961 covers time limit for completion of assessments and reassessments. Deadline by which the AO must finish the assessment (usually 9-12 months from end of AY).
Which section replaces Section 153 in the Income-tax Act, 2025?
Section 153 of the Income Tax Act, 1961 maps to Section 172 of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Tightened timelines to ensure taxpayers aren't kept in limbo for years.
What is the impact of the change to Section 153 under the new tax code?
The transition impact for Section 153 is rated High. Administrative deadline for the department.
What should I watch out for when Section 153 moves to the 2025 code?
Exclusion of time spent in DRP or stay orders from courts clearly defined. These points are specific to Section 153 (Time limit for completion of assessments and reassessments).
Disclaimer: This mapping of Section 153 (Time limit for completion of assessments and reassessments) to Section 172 of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 153 is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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