The Income Tax Act of 1961 prescribes specific limitation and compliance periods for various tax-related obligations to ensure timely adherence to legal provisions. For instance, entities must file applications for zero coupon bonds three months before the bond issuance and submit an auditor’s certificate within two months post-financial year. Foreign entity transfers must be reported within 90 days, while research associations need to furnish income statements before filing income tax returns. Section 9A protects offshore investment funds from being considered as doing business in India, provided they submit compliance reports within 90 days post-financial year. Trusts and institutions have varying deadlines for seeking approvals or renewing them based on their registration dates under Section 10(23C) and Section 12A, with further provisions detailing audit submission timelines and the issuance of tax holiday declarations. Additionally, reports on foreign entity ownership transfers, liaison offices, and financial transactions must also comply with stipulated deadlines, ensuring the transparency and accuracy of tax reporting. Meeting these deadlines is crucial for avoiding penalties and ensuring compliance with the Income Tax Act’s requirements.
Income-tax Act provides various due dates and limitation periods for various compliances. The document will help you to know beforehand the upcoming compliances, so that you can make hassle free compliances with all provisions.
PERIODS OF LIMITATION *
[AY 2025-26]
| Section | Nature of compliance | Limitation of time |
| (1) | (2) | (3) |
| 2(48) | Filing application for getting zero coupon bonds notified. | 3 months before the date of issue of bonds (but not earlier than 24 months immediately before the first day of the financial year in which bonds are to be issued) |
| 2(48) | Submission of chartered accountant’s certificate in respect of zero coupon bonds specifying the amount invested in each year. | Within 2 months from the end of each financial year. |
| 9(1) | Electronically submission of information in Form No. 49D pertaining to any transfer of the share of, or interest in, a foreign company/entity. | Within 90 days from the end of the financial year in which any such transfer takes place (within 90 days of the transaction where the transaction has the effect of directly or indirectly transferring the rights of management in relation to Indian concern) |
| 10(21) | Furnishing (by a research association) a statement to accumulate/set apart income for future application by uploading Form No. 10 | Before the expiry of time allowed for submission of return of income under section 139(1) |
| 9A(5) | Section 9A provides that fund management activity carried out by an eligible offshore investment fund through an eligible fund manager acting on behalf of such fund shall not constitute business connection in India (subject to certain conditions). | Within 90 days from the end of the financial year |
| The provision requires that eligible investment fund shall furnish a statement, in respect of its activities in a financial year, in the prescribed form containing information relating to fulfilment of specified conditions and such other information or documents as may be prescribed. | ||
| 10(23C) | Making an application for grant of approval by entities referred to in section 10(23C)(iv)/(v)/(vi)/(via): | |
| If entity is approved on or before 31-03-2021 | On or before 25-11-2022 | |
| If entity is approved and the period of such approval is due to expire | At least 6 months prior to expiry of said approval | |
| Where such entity has been provisionally approved | At least 6 months prior to expiry of the period of the provisional approval; or within 6 months of the commencement of its activities. | |
| Any other case (applicable upto 30-09-2023) | At least 1 month prior to commencement of the previous year relevant to the assessment year from which said approval is sought | |
| Any other case (applicable from 01-10-2023) where activities of such entity have not commenced | At least 1 month prior to commencement of the previous year relevant to the assessment year from which said approval is sought | |
| Any other case (applicable from 01-10-2023) where activities of such entity have commenced and no income (or part) has been excluded on account of applicability of section 10(23C) or section 11 for any previous year ending on or before the date of such application | At any time after the commencement of activities | |
| Passing of order by CIT or PCIT: | ||
| If entity is approved on or before 31-03- 2021 | Within 3 months from end of the month in which application is received | |
| If entity is approved and the period of such approval is due to expire | Within 6 months from the end of the month in which application is received | |
| Where such entity has been provisionally approved | Within 6 months from the end of the month in which application is received | |
| Any other case (applicable upto 30-09-2023) | Within 1 month from the end of the month in which application is received | |
| Any other case (applicable from 01-10-2023) where activities of such entity have not commenced | Within 1 month from the end of the month in which application is received | |
| Any other case (applicable from 01-10-2023) where activities of such entity have commenced and no income (or part) has been excluded on account of applicability of section 10(23C) or section 11 for any previous year ending on or before the date of such application | Within 6 months from the end of the month in which application is received | |
| 10(23C) | Getting accounts audited and uploading audit report in Form no. 10BB | One month prior to the due date of furnishing return of income under section 139(1). |
| Uploading Form 10 – Exercising option available under Explanation 3(a) to third proviso to Section 10(23C) | 2 months prior to the due date specified under section 139(1). | |
| 10A | Audit report certifying the deduction claimed under section 10A | Before the specified date referred to in section 44AB |
| Furnishing declaration by assessee in respect of industrial undertaking in any free trade zone for not availing tax holiday under section 10A | Before due date for furnishing return of income under section 139(1) | |
| 10B(8) | Furnishing declaration by assessee in respect of 100 per cent export-oriented undertaking for not availing tax holiday under section 10B | Before due date for furnishing return of income under section 139(1) |
| 11(1), Explanation | Exercising option available under Explanation to section 11(1) by uploading Form No. 9A | 2 months prior to the due date specified under section 139(1) |
| 11(2) | Furnishing a statement to accumulate/set apart income for future application by uploading Form No. 10 | 2 months prior to the due date specified under section 139(1) |
| 12A | Making an application for registration to claim exemption under section 11/12: | |
| Trust or institution is registered under section 12A/ 12AA on or before 31-03- 2021 | On or before 25-11-2022 | |
| Trust or institution is registered under section 12AB and period of said registration is due to expire | At least 6 months prior to expiry of said period | |
| Trust or institution has been provisionally registered under section 12AB | Earlier of the following: |
At least 6 months prior to expiry of the period of the provisional registration; or
At least 6 months prior to expiry of the period of the provisional approval; or
– for which assessment proceedings are stayed or
– taken for receipt of information from foreign jurisdiction,
(a) Research association as referred to in section 10(21);
(b) News agency as referred to in section 10(22B);
(c) Association or institution as referred to in section 10(23A);
(d) Institutions as referred to in section 10(23B);
(e) Fund/institution/trust/university/other educational institution/medical institution as referred to in sub-clause (iiiad), (iiiae), (iv), (v), (vi) or (via) of section 10(23C) 3 ;
(f) Trade union/association referred to in sub-clause (a) or (b) of section 10(24),
(g) Body/trust/authority as referred to in section 10(46);
(h) Infrastructure debt fund as referred to in section 10(47)
(i) Mutual Fund as referred to in section 10(23D)
(j) Securitisation trust as referred to in section 10(23DA)
(k) Venture capital company or venture capital fund as referred to in section 10(23FB)
b) Within 18 months from end of the assessment year in which income was first assessable. [Applicable for assessment year 2018-19]
c) Within 12 months from end of the assessment year in which income was first assessable. [Applicable for assessment year 2019-20]
d) Within 18 months from end of the assessment year in which income was first assessable [Applicable for assessment year 2020-21]
e) Within 9 months from end of the assessment year in which income was first assessable. [Applicable for assessment year 2021-22]
f) Within 12 months from end of the assessment year in which income was first assessable. [Applicable for assessment year 2022-23 and onwards]
Note:
b) Within 12 months from end of the financial year in which notice under section 148 was served. [if notice is served on or after 01-04-2019]
– Principal Chief Commissioner or
– Chief Commissioner or
– as the case may be an order under section 263/ 264 is passed by Principal Commissioner or Commissioner
b) Within 12 months from the end of the financial year in which order under section 254 is received or order under section 263 or 264 is passed by the authority. [if order is passed on or after financial year 2019-20]
– Principal Chief Commissioner or
– Chief Commissioner or
– As the case may be the order under section 263/ 264 is passed by the Principal Commissioner or Commissioner
Note:
1) If it is not possible to give effect to such order within the aforesaid period, the Principal Commissioner or Commissioner may allow an additional period of 6 months to AO.
– An order under Section 250/254/260/262/263/264 or
This period cannot be less than 9 months from the end of the financial year in which books of account, etc., are handed over under section 153C to the concerned Assessing Officer.
(if search conducted in the financial year 2017-18 or before)
b) Within a period of 18 months from end of the financial year in which the last of the authorizations for search/requisition under section 132/132A was executed.
This period cannot be less than 12 months from the end of the financial year in which books of account, etc., are handed over under section 153C to the concerned Assessing Officer.
(if search conducted in the financial year 2018-19)
c) Within a period of 12 months from end of the financial year in which the last of the authorizations for search/requisition under section 132/132A was executed.
This period cannot be less than 12 months from the end of the financial year in which books of account, etc., are handed over under section 153C to the concerned Assessing Officer.
b) Within 6 months from end of the month in which an application for rectification has been made by the Principal Commissioner or the Commissioner or the applicant, as the case may be.
(subject to conditions)
a) Shares or interest in a foreign company or entity derive substantial value, directly or indirectly, from assets located in India; and
b) Such foreign company or entity holds such assets in India through or in such Indian concern.
1. Omitted with effect from assessment year 2015-16.
2. Fringe Benefit Tax is not leviable from assessment year 2010-11.
3. With effect from assessment year 2016-17, university, educational institutes or hospitals as referred to in section 10(23C)(iiiab) and (iiiac) shall also file return of income if its total income before exemption under Section 10 exceeds the maximum amount which is not chargeable to tax.
4. Provisions of Chapter XIV-B shall not apply where search is initiated, etc., after 31-5-2003.
5. High Court can admit an appeal after the expiry of the said period of one hundred and twenty days if it is satisfied that there was sufficient cause for not filing the appeal within the said period.
6. With effect from assessment year 2015-16 a new section 285BA has been substituted which provides for the furnishing of statement of financial transaction or reportable account within such time and in the form and manner, as may be prescribed.
The time prescribed for rectifying a defect in the return filed as required by the prescribed income-tax authority is 30 days from such intimation or such extended time as may be allowed.
Where a person who is required to furnish a statement under the new section has not furnished it, the prescribed income-tax authority may serve upon the person a notice requiring him to furnish the statement within 30 days from the date of service of the notice. Any inaccuracy in the statement so furnished has to be informed to the income-tax authority within 10 days and the correct information furnished in the prescribed manner.
[As amended by Finance Act, 2024]
(Republished with Amendment, Source -Income Tax Website)