The time limit of an assessment under Section 143(1) is a period of one year from 1 June, 2001, as per the Finance Act, 2001, and for a regular assessment under Section 143/144 it is 2 years (reduced to 21 months from the A.Y. 2004-05 by the Finance Act, 2006) from the end of the assessment year in which the income was first assessable. For example, for the assessment year 2019-2020, the Assessing Officer must complete the assessment on or before 31 December 2020. Income tax and other dues, if any, as per the notice of demand, must be paid within the time mentioned in the demand notice. Normally, a period of 30 days is allowed to an assessee for making the payment of income tax and other dues as mentioned in the notice of demand. Where it is not possible for the non-resident Indian to pay the entire tax at one time, he may make an application to the Assessing Officer to permit him to make payment of the tax in suitable instalments. Interest at 1% per month is normally required to be paid for the period of belated tax payment. |
