Tax · Guide
Income tax reassessment notice: time limits and how to respond
Short answer
A reassessment notice reopens a past year when the department believes income escaped tax. For notices issued from 1 September 2024, the limit is 3 years and 3 months from the end of the assessment year, or 5 years and 3 months if the escaped income is Rs 50 lakh or more. A show-cause notice comes first.
A reassessment notice is serious but not a finding against you: it starts a process in which you get to explain. The time limits were shortened by the Finance (No. 2) Act, 2024, so the first thing to check is whether the notice is in time at all.
By FinancePaisa Editorial Team · Research & editorialUpdated · 3 min read
On this page (6 sections)
What is a reassessment notice?
It is a notice that the department wants to reassess a year it has already processed or assessed, because it has information suggesting some income escaped tax. Common triggers are property purchases or sales, large cash deposits, interest or capital gains in AIS that the return did not show, and high-value transactions reported by banks or registrars.
Notice kitne saal purana aa sakta hai? Time limits
For notices issued on or after 1 September 2024, the limits run from the end of the relevant assessment year:
| Escaped income | Notice can be issued up to | Example: FY 2022-23 (AY 2023-24) |
|---|---|---|
| Below Rs 50 lakh | 3 years and 3 months from the end of the AY | 30 June 2027 |
| Rs 50 lakh or more | 5 years and 3 months from the end of the AY | 30 June 2029 |
Below Rs 50 lakh
- Notice can be issued up to
- 3 years and 3 months from the end of the AY
- Example: FY 2022-23 (AY 2023-24)
- 30 June 2027
Rs 50 lakh or more
- Notice can be issued up to
- 5 years and 3 months from the end of the AY
- Example: FY 2022-23 (AY 2023-24)
- 30 June 2029
What happens after the show-cause notice?
- Show-cause notice (148A of the 1961 Act): sets out the information the officer has and asks why the year should not be reopened.
- Your reply: within the time the notice gives, through the e-filing portal, with documents.
- Order: the officer decides, considering your reply, whether it is a fit case to reopen.
- Reassessment notice (148): issued only if the order says so. You then file a return for that year and the reassessment proceeds.
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How do I reply to a reassessment show-cause notice?
- Check the year and the date on the notice against the time limits above. A notice issued after the limit can be challenged on that ground alone.
- Match the information quoted in the notice with your AIS, Form 26AS and the return you filed for that year.
- If the income was shown, point to where in the return. If it was exempt, explain why with documents, for example a sale deed and 54EC bond certificate.
- If income was genuinely missed, consider the tax and interest involved; the officer will compute both.
- Upload the reply under Pending Actions > e-Proceedings on the e-filing portal and save the acknowledgement.
Frequently asked questions
Can a reassessment notice come after 10 years?
Not for notices issued from 1 September 2024. The outer limit is 5 years and 3 months from the end of the assessment year, and only when escaped income is Rs 50 lakh or more.
What section is reassessment in the new Income-tax Act, 2025?
Sections 279 to 286. Section 147 corresponds to 279, 148 to 280, 148A to 281, and 149 (time limits) to 282.
Can I ignore a 148A notice?
You should not. If you do not reply, the officer can pass the order and issue the reassessment notice based only on the information they have.
Sources & references
- Reassessment under the Income-tax Act, 2025: sections 279 to 286 — TaxGuru (checked 22 Oct 2026)
- What is a section 148A notice and the changes in Budget 2024 — Business Today (checked 22 Oct 2026)
- Provide a robust response to a section 148A notice — Business Standard (checked 22 Oct 2026)
- Provisions of the Income-tax Act, 1961 vis-a-vis Income-tax Act, 2025 — CBDT
- Income Tax e-filing portal — Income Tax Department (checked 22 Oct 2026)
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