The Karnataka Government has notified the Removal of Difficulties order to extend the time limit for assessment under the KTEG Act,1979 ( Entry Tax) for the year 2016-17 by Three Months till 31st July 2021.
The assessment or reassessment of an amount of tax due for any prescribed tax period was originally not to be made after “five years” after the end of the prescribed tax period. This was changed to “five years and three months”. Similarly, regarding the tax periods up to March 2017, the assessment or reassessment may be made within “eight years and 3 months”, instead of “eight years”.
In respect of the orders appealed against, the time limit has been changed to 270 days, however, originally it was 180 days.
“For those orders appealed against are served after 1st day of October 2020 andbefore31st day of December 2020, for the purpose of calculating the “further period of one hundred and eighty days” in sub-section (2) of Section 14 of the said Act, shall be considered to be “ further period of two hundred seventy days,” the notification said.
“For the purpose of calculating the “four years from the date of the order sought to be revised” in sub-section (4) of Section 15 of the said Act, relating to tax periods upto March 2017, shall be considered to be “four years and three months from the date of an order sought to be revised,” the notification read.
The State government clarified that for the purpose of calculating the “five years from the date of an order passed by it” in sub-section (1) of Section 17 of the said Act, shall be considered to be “five years and three months from the date of an order passed by it”.