The document discusses the different types of income tax assessments in India: (1) Self-assessment where the assessee calculates their own tax owed; (2) Summary Assessment where the tax department reviews the return for accuracy; (3) Scrutiny Assessment allows the assessing officer to investigate the return to check for errors or omissions; (4) Best Judgment Assessment refers to the officer's opinion of the assessee's income if proper records are not provided; (5) Protective Assessment is made to protect revenue interests if liability is unclear; (6) Re-Assessment allows re-examining returns if income was missed; (7) Assessment in Case of Search allows re-assessing the last 6
The document discusses the different types of income tax assessments in India: (1) Self-assessment where the assessee calculates their own tax owed; (2) Summary Assessment where the tax department reviews the return for accuracy; (3) Scrutiny Assessment allows the assessing officer to investigate the return to check for errors or omissions; (4) Best Judgment Assessment refers to the officer's opinion of the assessee's income if proper records are not provided; (5) Protective Assessment is made to protect revenue interests if liability is unclear; (6) Re-Assessment allows re-examining returns if income was missed; (7) Assessment in Case of Search allows re-assessing the last 6
The document discusses the different types of income tax assessments in India: (1) Self-assessment where the assessee calculates their own tax owed; (2) Summary Assessment where the tax department reviews the return for accuracy; (3) Scrutiny Assessment allows the assessing officer to investigate the return to check for errors or omissions; (4) Best Judgment Assessment refers to the officer's opinion of the assessee's income if proper records are not provided; (5) Protective Assessment is made to protect revenue interests if liability is unclear; (6) Re-Assessment allows re-examining returns if income was missed; (7) Assessment in Case of Search allows re-assessing the last 6
The document discusses the different types of income tax assessments in India: (1) Self-assessment where the assessee calculates their own tax owed; (2) Summary Assessment where the tax department reviews the return for accuracy; (3) Scrutiny Assessment allows the assessing officer to investigate the return to check for errors or omissions; (4) Best Judgment Assessment refers to the officer's opinion of the assessee's income if proper records are not provided; (5) Protective Assessment is made to protect revenue interests if liability is unclear; (6) Re-Assessment allows re-examining returns if income was missed; (7) Assessment in Case of Search allows re-assessing the last 6
Every assessee, who earns income beyond the basic exemption limit in a Financial Year (FY), must file a statement containing details of his income, deductions, and other related information. This is called the Income Tax Return (ITR). Once you as a taxpayer file the income returns, the Income Tax Department will process it. There are occasions where, based on set parameters by the Central Board of Direct Taxes (CBDT), the return of an assessee gets picked for an assessment.
Types of Income Tax Assessment
1. Self-assessment – u/s 140A
2. Summary Assessment – u/s 143(1)
3. Scrutiny Assessment – u/s 143(3)
4. Best Judgment Assessment – u/s 144
5. Protective Assessment
6. Re-assessment or Income Escaping Assessment – u/s 147
7. Assessment in case of Search – u/s 153A
(1) Self-assessment – u/s 140A
This is the type of income tax assessment in which the assessee calculates the tax themself,
usually accompanied by payment of the amount they believe is due.
After taking TDS and subtracting advance tax paid, tax payable is required to be given under
section 139, section 142, section 148, or section 153A.
(2) Summary Assessment u/s 143(1)
The assessment under section 143(1) is similar to the initial review of a tax return. The
taxpayer receives an intimation u/s 143(1) from the IRS under this section. The department will send you a comparative income tax calculation. The overall income or loss incurred is
computed in the income tax assessment.
(3) Scrutiny Assessment u/s 143(3)
Scrutiny assessment is the assessment of a return filed by an assessee by providing an
opportunity for the assessee to support the declared income and expenses, as well as claims of
deductions, losses, exemptions, and so on, in the return using proof. The committee manages
it using a single work plan. The committee undertakes specific work, as well as forming
informal panels (for in-depth activities) or working groups.
The assessing officer is given the chance to conduct an investigation in order to determine if
the assessee correctly reported his or her income in the return. The claims for deductions,
exemptions, and other benefits are legal and factually correct. In case of any omissions,
contradictions, inaccuracies, or other errors, the assessing officer prepares his or her own
assessment for the assessee, taking into account all relevant circumstances.
(4) Best Judgment Assessment u/s 144
The term ‘best judgement assessment’ refers to the assessing officer’s opinion or calculation
of the assessee’s income in the context of income tax law. In the situation of best judgement
assessment, the evaluating officer will make the decision based on the best reasoning, i.e.,
they will not be dishonest. The assessee will not be dishonest in his or her assessment, nor
will he or she be hostile to the officer.
(5) Protective Assessment
This is a type of assessment that focuses on those that are made to ‘protect’ the revenue’s
interests. The income tax legislation, however, has no provision for the imposition of income
tax on anyone other than the person to whom it is due. It is open to the authorities to undertake a protective or alternative assessment if it is unclear who among a few probable
persons is actually liable to pay the tax.
The authorities just make an assessment and keep it on paper until the situation is resolved
when they make a protective assessment. A protective order of assessment, but not one of
penalty, can be issued.
(6) Re-Assessment (or) Income Escaping Assessment u/s 147
If the assessing officer has reason to think that income liable to tax has escaped assessment
for any assessment year, they will conduct an income escaping assessment under Section 147.
Moreover, it gives them the authority to reassess or re-compute income, turnover, and other
figures that have escaped their notice.
The goal of conducting an assessment under Section 147 is to bring any income that escaped
assessment in the original assessment into the tax net.
(7) Assessment in Case of Search u/s 153A
The assessing officer will do the following in this type of income tax assessment:
• Giving such a person notice requires furnishing it within the time frame mentioned in the notice. Clause (b) referred to the income return for each of the six assessment years, which is confirmed in the prescribed format. Setting forth such other particulars as may be prescribed, and the provisions of this Act shall apply as if such return were a return required to be furnished under Section 139, to the extent possible;
• The assessor re-assesses the total income of the six assessment years immediately preceding the assessment year relevant to the previous year in which such search or requisition is made.
