1.

Self Assessment u/s 140A

The assessee himself determines the income tax payable. The tax department has made
available various forms for filing income tax return. The assessee consolidates his income
from various sources and adjusts the same against losses or deductions or various
exemptions if any, available to him during the year. The total income of the assessee is
then arrived at.
The assessee reduces the TDS/TCS, Relief and Advance Tax paid, if any, from that amount
to determine the tax payable on such income. Tax must be paid by him before he files
his return of income. This process is known as Self Assessment.

Time limit:
There are no specific dates to pay Self Assessment Tax.

Payment of Self Assessment Tax and non-filing of the returns should be paid
within 31st July of every year.
Procedure

 Direct Mode of Payment

Self Assessment Tax can be paid by filling a tax payment challan, ITNS 280.
Challans are available in the designated branches of banks associated with the
Income Tax Department.

 Online Mode of Payment

Assessee can pay tax online through different websites.

2. Summary assessment u/s 143(1)

Assessment under section 143(1) is like initial checking of the return of income.
Under this section, Income tax department sent intimation u/s 143(1) to the taxpayer.

In this type of assessment, the information submitted by the assessee in his return of
income is cross-checked against the information that the income tax department has
access to.
In the process, the reasonableness and correctness of the return are verified by the
department.
At this stage , total income and loss is computed after making following adjustments:-
 Any arithmetical errors,
 An incorrect claims,
 Disallowances of loss claimed
 Disallowances of expenditure indicated in audit report but not taken into
account while computing total income or loss etc.
Example, credit for TDS claimed by the taxpayer is found to be higher than what is
available against his PAN as per department records. Making an adjustment in this
regard can increase the tax liability of the taxpayer.
After making the aforementioned adjustments, if the assessee is required to pay tax, he
will be sent an intimation under Section 143(1). The assessee must respond to this
intimation accordingly.

Time Limit:

Assessment u/s 143(1) can be made within a period of one year from the end of
financial year in which the return is filed.

3. Scrutiny Assessment u/s 143(3)

Scrutiny assessment is the assessment of the return filed by the assessee by
giving an opportunity to the assessee to substantiate the declared income and
expenses and the claims of deductions, losses, exemptions, etc. in the return with
the help of evidence.It is managed by the Committee through a single work plan.
 Specific work is undertaken through the committee and by establishing informal
panels (for in-depth activities) or working groups.

The assessing officer gets the opportunity to conduct an inquiry and aims at
ascertaining whether the income in the return is correctly shown by the assessee
or not. The claims for deductions, exemptions etc. are legally and factually.

If there is any omission, discrepancies, inaccuracies, etc. Then the assessing

officer makes an own assessment for the assessee by taking all facts in mind.

4. Best Judgment Assessment u/s 144

The best judgment assessment means evaluation or estimation in the context income
tax law of income of the assessee by the assessing officer.

In the case of best judgment assessment, the assessing officer will make the
assessment based on best reasoning i.e. they will not act dishonestly. The assessee
will neither be dishonest in assessment nor have a bitter attitude towards the officer.
This is a type of income tax assessment which involves the input of both the assessee
and the officer equally.

Types
 Compulsory Assessment: Assessing officer (AO) finds that there is non-
cooperation by the assessee or found to be a defaulter in supplying information
to the department.
 Discretionary/optional assessment: When AO is dissatisfied with the
authenticity/validity of the accounts given by the assessee or where no regular
method of accounting has been followed by the assessee.

The process of Best Judgement Assessment is applied in conformity with the

Principles of Natural Justice.

Cases
This assessment gets invoked in the following scenarios:
a. If the assessee fails to respond to a notice issued by the department instructing him to
produce certain information or books of accounts
b. If he/she fails to comply with a Special Audit ordered by the Income tax authorities
c. The assessee fails to file the return within due date or such extended time limit as
allowed by the CBDT
d. The assessee fails to comply with the terms as contained in the notice issued under
Summary Assessment
After providing the assessee with an opportunity of being heard, the assessing officer
passes an order based on all the relevant materials and evidence available to him. This
is known as Best Judgement Assessment.

5. Protective assessment
This is a type of assessments that focus on those assessments which are made
to ‘protect’ the interest of the revenue.

Though, there is no provision in the income tax act authorizing the levy of income tax
on a person other than whom the income tax is payable. It is open to the authorities to
make a protective or an alternative assessment if it is not ascertainable who is really
liable to pay the tax among a few possible persons.

For example

If there are doubts on a rental income belongs to Mr. A or Mr. B. Then, the assessing
officer at his own discretion may add the rental income to any one of them on a
protective basis. This is done ensure that finality, the owner of the income has not
denied the addition of income because of limitation of time.

In making a protective assessment, the authorities are simply making an assessment

and leaving it as a paper assessment until the matter is decided. A protective order of
assessment can be passed but not a protective order of penalty.

6. Re-Assessment (or) Income escaping assessment u/s

147 –
Income Escaping Assessment under section 147 is the assessment which is done by the
Assessing Officer if there is a reason for him to believe that income chargeable to tax has
escaped assessment for any assessment year. It gives power to him to re-assess or re-
compute income, turnover etc. which has escaped assessment.

Objective
The objective of carrying out assessment u/s 147 is to bring them under the tax net,
any income which has escaped assessment in the original assessment.

Time limit

 Completion of assessment under section 147

Under section 147, notice is issued within 9 months from the end of the financial year
in which notice u/s 148 is also served.

 Notice issued under section 148

Under section 148, notice can be issued within a period of 4 years from the end of the relevant
assessment.

Case 1: If escaped income amounts to Rs. 1, 00,000 or more and then notice can be
issued for up to 6 years from the end of the relevant assessment year.

Case 2: If escaped income is associated with any assets (including financial interest
in any entity) i.e. located outside India, and then notice can be issued up to 16
years from the end of the relevant assessment year.

Notice –

u/s 148 can be issued by AO only after getting prior approval from the prescribed
authority mentioned in section 151.

7. Assessment in case of search u/s 153A

Under this type of Income Tax Assessment, the Assessing Officer will:

 Issue notice to such person requires furnishing within such period, as specified in the
notice. Clause (b) referred to the return of income of each assessment year falling
within six assessment years and is verified in prescribed form. Setting forth such
other particulars as may be prescribed and the provisions of this Act shall, so far as
may be, apply accordingly as if such return were a return required to be furnished
under section 139;
 Assessor re-assess the total income of six assessment years immediately preceding
the assessment year relevant to the previous year in which such search is conducted
or requisition is made.

Note: Section 153A issues a notice for 6 years, preceding the search not for the year
of search and no return is required to be filed (for the year of search) u/s 153A. File
only a regular return u/s 139.
Time limit for completion of assessment u/s 153A/153C: [153B]
Case 1: Person searched under section 153A

 21 months from the end of the financial year this does not include the last
authorization for search u/s 132 or requisition u/s 132A.
 Similar time limits shall apply in respect of the year of search also.

Case 2: Any other person 153C

As provided in above clause (a) or clause (b) or 9 months from the end of the
Financial Year where BOA/documents/assets seized/requisitioned are handed over to
the assessing officer (AO), whatever is latest.

Conclusion
All types of income tax assessment should be taken seriously. Moreover, file the
income tax return accurately and mention all the proofs to avoid any type of income
tax assessment in front of the assessing officer.