Every taxpayer has to furnish the details of his income to the Income-tax Department. These details are to be furnished by filing his return of income. Once the return of income is filed by the taxpayer, the next step is the processing of the return of income by the Income-tax Department. The Income-tax Department examines […]
What are the major assessments under the Income-tax Law?
Under the Income-tax Law, there are four major assessments as given below: section 143(1), i.e., Summary assessment without calling the assessee i.e. taxpayer. Assessment under section 143(3), i.e., Scrutiny assessment. Assessment under section 144, i.e., Best judgment assessment. Assessment under section 147, i.e., Income escaping assessment.
What is the procedure adopted for making the assessment under section 143(1)?
Assessment under section 143(1) is like preliminary checking of the return of income. At this stage, the total income or loss is computed after making the preliminary adjustments (as discussed in previous FAQ). The other procedures in this regard are as follows: After making the adjustments (if any) as discussed in previous FAQ, the tax, […]
What is the scope of assessment under section 143(3) i.e. scrutiny assessment?
The objective of scrutiny assessment is to confirm that the taxpayer has not understated the income or has not computed excessive loss or has not underpaid the tax in any manner. To confirm the above, the Assessing Officer carries out a detailed scrutiny of the return of income and will satisfy himself regarding various […]
What are the circumstances under which assessment under section 147 i.e. income escaping assessment can be carried out?
If any income of an assessee has escaped assessment for any assessment year, the Assessing Officer may, subject to the new provisions of sections 148 to 153, assess or reassess such income and also any other income which has escaped assessment and which comes to his notice subsequently in the course of the proceedings, or […]