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ASSESSMENITININcOMETAX
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Au Atlt, Introduction
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ncome tax agsessment is the process of collecting and reviewing the information filed by
assesseey in their income tax rêturns. At the' end of each financial year. "all persons and
entities required to file anincometaxreturn by self-computingtheamountõfincomecarhcd
andpay the tax due.
The process of examination of|ITR by the Income Tax Departmentis called "Assessment
The assessment also includes re-assessiment and best judgment assessment under seçtion 147
and 144 respectively and the different typelof income tax assessment.
144
44
Types of Income Tax Assessment:

Sell Assessment -u/s 140A

Summary assessment -u/s 143(1)

Scrutiny assess1ment -u/s 143(3)

Best Judgmént Assessment -u/s 144

Protective assessment

Re-assessment or Income escaping assessment -u/s 147

Assessment in case of search -u/s 153A hlmarlf

1)SelfAssessmentu/s 140A
This type of Incgme Tax Assessment is the one in which the assesseecalculate,the tax by
himself, usuallyto accompany his caleulationwith payment of the anmountheregards as due

Tax payable is required to be furnished under section 139 or section 142 or section 148 or
section 153A, after taking TDS and deducting Advance tax paid.
Time limit:

There are no specifie dates to pay Self Assessment Tax. Payment of SelfAssessment Taxand
non-filing ofthe returns shouldbe paid within 31st July ofevery_veas.
Procedure

Direct Mode of Payment - Teub,a h a l o n

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

Online Mode of Payment

Assessee can pay tax online through different websites

 T d p t k n l i k a h e

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2) Summary assessment u/s 143). mome

Assessment under section 143(1) is like

initial checking of the return of income. Under this
section. Income tax department
sent intimation u/s 43T) O the taxpayer. A
Income Tax computation is sent by the Department Comparative
In income tax assessment, total income
or loss
incurred is computed.
LAaena (tn paye)
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. Lwbtamlet Anc.f,

Scrutiny assessment is the

3)Scrutiny Assessment u/s 143(3)
assessment of the return filed by the a s s e s s e e )C
byOg
m i vm
ing
iYan

opportunity to the assessee to substantiatethe declared income and expensesand the claims
of deductions, losses, exemptions, etc. in the return with the
help of evidence.lt is managed
by the Committed hrough a single work plan. Specific work is undertaken through the
committee and by establishing informalpanels (for in-depth
activities) or working groups.A
Comnr ntmnal Kanud. d to
The assessihg officer gets the opportunity to conduct an
inquiry and aims at ascertaining
whether the
income inthe return is correctlyshown by theassessee or not. The claims for
deductions, exemptions etc. are legally and factually.

If there is any omission, discrepancies inaceuracies.ctc. Then the assessing ofticermakes an

Wau_aLchaatae
Own assessment for the assessee by taking all facts in mind. alaudaaasI S
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(4) Best Judgment Assessment u/s|144

The lerm 'best judgement assessment' refers to the assessing officer's opinion or caleulation
of the assessee's income_in the context ofincome tax law. In the situation of best judgement
assessment, the evaluating officer will make the-decision based on the best reasoning, i.e.
theywillnot-bedishonest. The assessee will not be dishonestjn his or her assess1ment. nor
will heorshepe-hostileto the oflicer.

(5) Protective Assessment

This is a type of assessment that focuses on those that are made to protect the revenue's
interests, The income tx legislation, however, has no provision for the impositionot income
tax on anyone other than theperson to whom it is due.lt is open to the authorities to
undertake a protective or alternatiye assessmentitu is unclear who among a few probable
persons iS actually liableto pay thetax-
otiu e ALueuwe u t .
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 no one of
dnitneu CHy,
penalty. can be issued

Yeat t a pe c a / p

(6) Re-Assessment (or) Income Escaping Assessment u/s l47, U {

If the assessing officer has reason to think that income liable to tax has escaped assessiient
forany asse_synent year, they will conduict an incomeescapingassessmentunder Section 147.
Moreover. it gives them the authority to/reassess or re-compute incom turnover, and olher
figuresthat have escaped their notice.
C O y u t

The goal of conducting an assessment under Section-147isto bring anyincome fhat escuped y
assessmentin the original assessment into the/tax net.
P o n n

(7) Assessment in Case of Search u/s 153A 't fndoehy

The assessing officer will do the following in this type ofincome 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
conlinned in the prescribed format. Setting forth such other particulars as may be prescribed.
and the provipions of this Act shall apply as if such return were a return required to be
furnished under-Seetien-+39,tothe extent possible;
The assessor re-assesses the total income of the/six assessment years immediately preceding
the assessment year relevant to the prèvious year in which suchsearch or requisitionís madle.

Under Section 153A, a notice js issued foy6 years preceding the search. not for, the yer of
hesearchAThNofeturn is required to befiled (for the year of the search). Only file a reular
4eturn us 139

Conclusion
Income tax assessments of any kind should be treated seriously Furthermore, to avoid auny
fornofincómetax assessmentinfrönioftheassessing-otticeE-One-HUSt prepare tiheincome
taxgeturnaccurately.

all be deemud to aus

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