Section 286 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 286 fixes how long the Assessing Officer has to complete each kind of assessment, reassessment, recomputation or giving-effect order. Sub-section (1) is an eleven-row Table; sub-section (2) adds twelve months where a transfer pricing reference is made. This article covers sub-sections (1) and (2) as per the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026. The exclusions, extensions and deeming rules in sub-sections (3) to (8) are explained in our sibling article on periods excluded in computing the time limits.
No order of the kind listed in column B of the Table may be made after the period in column D, counted from the date in column C. Most limits are one year, counted from the end of a financial year or month fixed in the Table. Some orders have six months (extendable to nine) or two months. Where a reference is made to the Transfer Pricing Officer, the limits for Table rows 1 to 5 are extended by twelve months.
How to read the Table
Sub-section (1) says no order in respect of proceedings mentioned in column B shall be made after expiry of the period specified in the corresponding entry in column D, calculated from the date mentioned in column C. So for every proceeding you ask three questions: what is the kind of order (column B), from when does the clock start (column C), and how long is it (column D).
Section 286 works together with the assessment sections. The orders in rows 1 to 3 are assessment orders under section 270(10) or section 271; see our article on section 270. Rows 4 and 7 relate to section 279; see section 279. If you are tracking a limitation date on an order, our legal dispute resolution team can help you map it.
The Table (sub-section (1))
| Serial number | Nature of proceedings or orders (column B) | Date from which time limit is calculated (column C) | Time limit (column D) |
|---|---|---|---|
| 1 | Assessment order under section 270(10) or section 271 | End of the financial year succeeding the relevant tax year for which assessment is made | One year |
| 2 | Assessment order under section 270(10) or 271, where an updated return of income is furnished under section 263(6) | End of the financial year in which such updated return was furnished | One year |
| 3 | Assessment order under section 270(10) or 271, where return is furnished in consequence of order under section 239(3)(b) | End of the financial year in which such return was furnished | One year |
| 4 | Assessment, reassessment or recomputation order under section 279 | End of the financial year in which notice under section 280 was served | One year |
| 5 | Fresh assessment order or fresh order under section 166 in pursuance of an order under section 359, 363, 377 or 378 setting aside or cancelling an assessment order or an order under section 166 | End of the financial year in which the order under section 359 or 363 is received by, or order under section 377 or 378 is passed by, the jurisdictional Principal Commissioner or Commissioner | One year |
| 6 | Assessment or reassessment which stands revived, as per section 292 | End of the month in which such assessment or reassessment stands revived | One year |
| 7 | Assessment required to be made in the hands of a partner, in consequence of an assessment made on the firm under section 279 | End of the month in which the assessment order in the case of the firm is passed | One year |
| 8 | Assessment, reassessment or recomputation required to be made on the assessee or any person in consequence of or to give effect to any finding or direction contained in an order (i) under section 359 or 363 or 365(10), or 368, or 377 or 378; or (ii) of any Court in a proceeding otherwise than by way of appeal or reference under this Act | End of the month in which such order is received, or passed, by the jurisdictional Principal Commissioner or Commissioner | One year |
| 9 | Order giving effect to an order under section 359, 363, 365(10), 368, 377 or 378, otherwise than by making a fresh assessment or reassessment or fresh order under section 166, where (i) verification of any issue by way of submission of any document by the assessee or any other person is to be carried out; or (ii) an opportunity of being heard is to be given to the assessee | End of the month in which order under section 359, 363, 365(10) or 368 is received, or order under section 377 or 378 is passed, by the jurisdictional Principal Commissioner or Commissioner | One year |
| 10 | Order giving effect to an order under section 359, 363, 365(10), 368, 377 or 378 otherwise than by making a fresh assessment or reassessment or fresh order under section 166 | End of the month in which order under section 359, 363, 365(10) or 368 is received by, or order under section 377 or 378 is passed by, the jurisdictional Principal Commissioner or Commissioner | Six months, extendable to nine months with the approval of authorities as per section 2(62) and (64) |
| 11 | Modification of assessment, reassessment or recomputation to give effect to the order passed under section 166 read with section 377 | End of the month in which such order under section 166 is received by the Assessing Officer | Two months |
Printing note: in row 9 the copy consulted prints a stray digit string ("3686is") after "368", which is a footnote mark and is dropped here. In row 10 the clause is cut by a page break; the text is joined above.
Patterns in the Table
- Financial year anchors (rows 1 to 5). The clock starts at the end of a financial year: the one succeeding the tax year (row 1), the one in which the updated return or the return was furnished (rows 2 and 3), or the one in which the notice under section 280 was served (row 4). Row 5 uses the financial year in which the Principal Commissioner receives the order or passes the order.
- Month anchors (rows 6 to 11). For revived assessments, partner assessments and giving-effect orders the clock starts at the end of the month in which the triggering event happened.
- Shortest limits. Row 11 (modification to give effect to an order under section 166 read with section 377) has two months. Row 10 has six months, which can be extended to nine months with the approval of authorities as per section 2(62) and (64).
- Orders that need the assessee. Row 9 covers giving-effect orders where verification of a document or an opportunity of being heard is required, and has one year; row 10 is the same kind of order without those steps.
Sub-section (2): the extension for Transfer Pricing Officer references
Sub-section (2) is printed in square brackets, as substituted by the Finance Act, 2026, with effect from 1 April 2026. It has two clauses.
Clause (a). The time limit for completion of any assessment or reassessment as provided in sub-section (1) (Table, serial numbers 1 to 5), in a case where reference is made to the Transfer Pricing Officer for determining the arm's length price under section 166(1), is extended by an additional period of twelve months.
Clause (b). In terms of sub-section (1) (Table, serial numbers 1 to 5) and this sub-section, the draft of the proposed order of assessment referred to in section 275 shall be made at any time up to the time limit of assessment, reassessment or recomputation referred to in the Table and this sub-section. In other words, the draft order for the Dispute Resolution Panel route must be forwarded within the time limit; see our article on section 275.
The twelve-month extension applies to rows 1 to 5 only. It does not extend rows 6 to 11.
A worked example
The dates and the company are assumed, and the tax year is taken to begin on 1 April 2026.
Example 1 (row 1). Ashoka Exports Pvt Ltd furnishes its return for the tax year beginning 1 April 2026. The financial year succeeding the tax year ends on 31 March 2028. The time limit is one year from that date, so the assessment order under section 270(10) or 271 cannot be made after 31 March 2029.
Example 2 (row 1 with a transfer pricing reference). If, in the same case, the Assessing Officer makes a reference to the Transfer Pricing Officer under section 166(1), sub-section (2)(a) adds twelve months to the limit: 31 March 2029 plus twelve months is 31 March 2030. The draft order under section 275 must be forwarded on or before the extended limit.
Example 3 (row 4). A notice under section 280 is served on 20 September 2027. The financial year in which it is served ends on 31 March 2028, and one year from that date is 31 March 2029. The reassessment order cannot be made after that date.
Example 4 (row 11). An order under section 166 read with section 377 is received by the Assessing Officer on 14 June 2028. The month ends on 30 June 2028, and the modification must be made within two months of that, by 31 August 2028.
Need help with limitation questions?
Whether an assessment or giving-effect order is within time depends on identifying the right row and the right start date, then adding the extensions and exclusions. If you hold an order and want to check whether it was made in time, our team can help you read it against the Table. See our legal dispute resolution service.
Key takeaways
- Section 286(1) fixes the time limit for each type of order in an eleven-row Table: a nature of proceeding, a start date and a period.
- Rows 1 to 5 run from the end of a financial year; rows 6 to 11 run from the end of a month.
- Most periods are one year; row 10 is six months (extendable to nine), and row 11 is two months.
- Sub-section (2), printed as substituted by the Finance Act, 2026, adds twelve months to rows 1 to 5 where a reference is made to the Transfer Pricing Officer under section 166(1).
- The draft order under section 275 must be forwarded within the limit, including the twelve-month extension.
- Exclusions and minimum remaining periods are in sub-sections (3) to (8).
Read next
- Periods excluded in computing assessment time limits, section 286(3) to (8)
- Section 275: Dispute Resolution Panel
- Section 287: rectification of mistake
- Sections 283 to 285: assessment after appeal orders
Disclaimer: Based on the Income-tax Act, 2025 (30 of 2025) as amended by the Finance Act, 2026, as consulted on 2 October 2026. It explains the words of the Act only; the Income-tax Rules, 2026, notifications, circulars, later amendments and the way the tax authorities and courts apply these provisions should be checked. This article is general information, not legal advice; check the official text before acting.