Vivek Tiwari & Co.

Income Tax Assessment

Every individual, who earns income beyond the tax free limit in a Relevant Financial Year (FY),must file a statement or document containing details of his income, deductions, and other necessary information. This is called Income Tax Return (ITR).Once you as a taxpayer file the income returns, the Income Tax Department will process it. There are many scenario which are based, on certain parameters by the Central Board of Direct Taxes (CBDT), the return will be picked for the assessment.

When an assssee files an income tax return then, it goes into processing. And after that when the Income tax return received by The Income Tax Department then all the details will be analyses a that a taxpayer submits. This is Income Tax Assessment

Types of Assessment

1-Self Assessment- According to section 140A of The Income Tax Act, 1961 when the process of calculating and the payment of tax, when done by the assesee himself is called Self-Assessment.
2-Summary Assessment - According to section 143 (1) of the Income Tax Act,1961,when all the information has been submitted by the taxpayer regarding his income in his tax return then. All the information is cross checked by the Income tax department which is available to the department and In this process all the arithmetical errors are corrected and the incorrect deduction and disallowances are corrected. And when the assessment is done after that he is informed via a notice and all the process is done digitally without the help of human.
3-Regular Assessment- It is that type of asessmet which is done by Income tax department who Authorizes an Assessing Officer or Income Tax Authority .The reason to do this assessment is that the assessee has neither decreases his income or claim any expenses of loss which is not related to him. And for this assessment Income Tax Departmetnt set certain parameter on which assesses picked for his assessment. And under this Assessment Assessee have to produce additional books of account or document to make his statement correct.
4-Scrutiny Assessment- When an assessee submits An Income Tax return, An Income tax officer shall be appointed by the Income tax department to check the return filled by an assessee. The taxpayer or assessee will be informed of this through an Income Tax notice under the Section 143 (2) and after that officer appointed by Income Tax authority may request for information ,books of account and document on which basis the income tax return is filled for scrutiny assessment. After the document received by the department the officer will examined and calculate income tax payabe by the assessee and if there is any difference then he have to pay additional tax and if the additional tax filled by him then department will issue refund certificate to assess And if he is not satisfied the he may apply for a revision application.
5-Best Judgement Assessment- This assessment is done by the Assessing officer of the Inocme tax authority authorized by the Income Tax Department .There are certain cases when this assessment is done by the authority and It is totally dependent of the authority what decision have to be given that's why the name of this assessment is Best Judgement Assessment.
Some of the cases are as follows under which this assessment may be done
- a-When assessee fails to respond in time of notice by the Income tax department..
- b-The assessee did not file return in time and such extended time limit given by the CBDT.
6-Income Escaping Assessment- When there is sufficient reason to believe that assessee has escaped his taxable income then assessing officer has power to send notice for reopen an assessment and time limit of reopening the return is 4 years from the end of relevant financial year and there are so many scenario under which this assessment can be done.