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What is the ordinary limitation period for completing a section 270(10) scrutiny assessment under section 286(1), assuming no exclusions or extensions?

Question and options

What is the ordinary limitation period for completing a section 270(10) scrutiny assessment under section 286(1), assuming no exclusions or extensions?

  1. One year from the end of the financial year succeeding the relevant tax year

  2. One year from the end of the relevant tax year itself

  3. Two years from the date of the return

  4. Two years from the end of the financial year succeeding the relevant tax year

Answer and explanation

Correct answer: A - One year from the end of the financial year succeeding the relevant tax year

Section 286(1) of the Income-tax Act, 2025, Table item 1, allows one year from the end of the financial year succeeding the relevant tax year to complete an assessment under section 270(10). Measuring one year from the end of the tax year itself would leave less time than the Act gives.

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