Budget 2025: Period of ‘Stay’ by Court to be excluded to Calculate Time Limit u/s 206C

The Union Budget 2025 introduced a change regarding the calculation of time limits for compliance under Section 206C of the Income Tax Act, specifically in cases of a court-stayed period. The period during which a case is stayed by a court order will not be counted when determining the time limit for actions such as issuing a notice or completing assessments. This adjustment aims to prevent penalizing taxpayers for delays outside their control. It will ensure that cases affected by court proceedings are not unduly penalized, thus providing more clarity and fairness in the tax assessment process. This proposal is expected to benefit businesses and individuals involved in legal disputes, as it provides them with more time to comply after a court order.