Section 11 explained: this guide covers what it means, who it applies to, the step-by-step process, documents required, fees, due dates and penalties in India — so you can stay compliant with confidence and avoid costly mistakes.
Section 11 puts a clock on the Assessing Officer. An order of assessment or reassessment under section 10 must be made within a fixed period counted from the end of a financial year, with separate rules for fresh assessments after an appeal, for assessments that give effect to a finding or direction, and for periods that are left out of the count. The periods below are as enacted in the Gazette of India of 27 May 2015.
No order of assessment or reassessment under section 10 may be made after two years from the end of the financial year in which the section 10(1) notice was issued, as enacted. A fresh assessment after an order under section 18 has two years from the end of the financial year in which that order is received by the Principal Commissioner or the Commissioner. Certain periods are excluded, and an exclusion that leaves less than sixty days extends the remaining period to sixty days.
The main rule: sub-section (1)
Section 11(1) says no order of assessment or reassessment shall be made under section 10 "after the expiry of two years from the end of the financial year in which the notice under sub-section (1) of section 10 was issued by the Assessing Officer".
Take each part in turn.
- The starting point is the notice. The relevant notice is the one under section 10(1). The date of the notice decides the financial year.
- The count begins at the end of that financial year. It is not counted from the date of the notice itself.
- The period is two years, as enacted.
If the Assessing Officer serves further notices under section 10(1) "from time to time", the sub-section does not say which notice starts the clock. It speaks of "the notice", and this article does not extend it. A reader in that position should check the point with an adviser. Our legal dispute resolution team can help you read the notices and fix the dates.
Sub-section (2): fresh assessment after an order under section 18
Section 11(2) applies "notwithstanding anything contained in sub-section (1)". It deals with an order of fresh assessment made in pursuance of an order under section 18 that sets aside or cancels an assessment. Section 18 is the appeal to the Appellate Tribunal; see our article on section 18. Such a fresh assessment may be made at any time before the expiry of two years from the end of the financial year in which the order under section 18 is received by the Principal Commissioner or the Commissioner.
Sub-section (3): assessments that give effect to a finding or direction
Section 11(3) says that sub-section (1) shall not apply to an assessment or reassessment made in consequence of, or to give effect to, any finding or direction contained in:
- an order under section 15, or section 18, or section 19, or section 22 of this Act; or
- an order of any court in a proceeding otherwise than by way of appeal under this Act.
Such an assessment or reassessment may, subject to sub-section (2), be completed at any time before the expiry of two years from the end of the financial year in which the order is received by the Principal Commissioner or the Commissioner.
| Order giving rise to the assessment | Period for the new assessment |
|---|---|
| Fresh assessment after a section 18 order setting aside or cancelling an assessment (sub-section (2)) | Two years from the end of the financial year in which the order is received by the Principal Commissioner or the Commissioner |
| Assessment to give effect to a finding or direction in an order under section 15, 18, 19 or 22, or a court order not made in an appeal under this Act (sub-section (3)) | The same two years, from the end of the financial year of receipt, "subject to the provisions of sub-section (2)" |
| Any other assessment (sub-section (1)) | Two years from the end of the financial year in which the section 10(1) notice was issued |
Explanation 1: time that is left out
Explanation 1 says that in computing the period of limitation for the purpose of the section, the following shall be excluded:
- the time taken in reopening the whole or any part of the proceeding; or
- the period during which the assessment proceeding is stayed by an order or injunction of any court; or
- the period commencing from the date on which a reference, or the first of the references, for exchange of information is made by an authority competent under an agreement referred to in section 90 or section 90A of the Income-tax Act, or under section 73 of this Act, and ending with the date on which the Principal Commissioner or the Commissioner last receives the information so requested, or a period of one year, whichever is less.
The third exclusion is capped: it is the period to the last receipt of the information, or one year, whichever is less. Sections 90 and 90A of the Income-tax Act are quoted as printed. Section 73 of this Act, on agreements with foreign countries, is covered in our article on section 73.
The proviso: a sixty-day floor
The proviso to Explanation 1 says that where, immediately after the exclusion of the time or period, the period of limitation in sub-sections (1), (2) and (3) available to the Assessing Officer is less than sixty days, the remaining period shall be extended to sixty days, and the period of limitation shall be deemed to be extended accordingly. So after the exclusions are taken out, the officer has at least sixty days, as enacted.
Explanation 2: another year, same order
Explanation 2 deals with the case where, by an order referred to in sub-section (3), any undisclosed foreign income and asset is excluded from the total for an assessment year. Then an assessment of that income and asset for another assessment year shall, for the purposes of section 10 and section 11, be deemed to be one made in consequence of, or to give effect to, any finding or direction in the said order. The effect is that sub-section (3)'s period applies to that other year.
An example with invented dates
Suppose a section 10(1) notice is issued to Isha Bhatt on 12 September in the financial year 2024-25. That financial year ends on 31 March 2025. Under section 11(1) as enacted, two years from that date gives 31 March 2027 as the last day for an order of assessment, before any exclusions. If a court stays the assessment proceeding for four months, Explanation 1(ii) leaves those four months out of the count. If, after excluding them, fewer than sixty days remain, the proviso extends the remainder to sixty days. The dates are invented for illustration, and the Act decides the real ones.
Why the section matters
The limit protects the assessee from open-ended proceedings and tells the officer when the file must close. It also explains why the dates on notices, orders received by the Commissioner and any court stay are worth recording carefully. The assessment itself is in section 10. For limits on appeals, see the next articles in this series, starting with sections 15 to 17.
Need help with limitation dates in an assessment?
Counting the period correctly, with the exclusions and the sixty-day floor, depends on the actual dates of notices and orders. Our legal dispute resolution team can help you map the dates and test whether an order is within time.
Key takeaways
- The general limit is two years from the end of the financial year in which the section 10(1) notice was issued, as enacted.
- A fresh assessment after a section 18 order has two years from the end of the financial year in which the order is received by the Principal Commissioner or the Commissioner.
- Assessments that give effect to a finding or direction under section 15, 18, 19 or 22, or a court order outside an appeal under this Act, have their own two-year period.
- Reopening time, a court stay and a capped period for exchange-of-information references are excluded.
- If the excluded time leaves less than sixty days, the remaining period is extended to sixty days.
- Later Finance Act amendments to section 11 must be checked before acting. References to sections 90 and 90A of the Income-tax Act, 1961 are as printed in 2015; check the corresponding provision of the current income-tax law.
Read next
- Section 10: assessment of undisclosed foreign income and asset
- Sections 12-14: rectification, notice of demand and direct assessment
- Section 18: appeal to the Appellate Tribunal
- Limitation periods for suits and appeals under Indian law
Disclaimer: Based on the Black Money (Undisclosed Foreign Income and Assets) and Imposition of Tax Act, 2015 as enacted and published in the Gazette of India on 27 May 2015, and on the Rules of 2015 as notified on 2 July 2015, as consulted on 2 October 2026. Later Finance Act amendments, amendment rules and the current income-tax law should be checked. This article is general information, not legal advice; check the official text before acting.