Income Tax Assessment Procedure
Here, we will do a detailed study about Regular Assessment and what is the meaning of Self – Assessment?
Self Assessment:
Every person who files the return of income is assumed to have self assessed his income, expenses, his tax liability, tax already deducted by others, etc. This is known as self – Assessment. A certain random number of cases are selected every year for assessment. For, the ones which are not selected, it is assumed that the particulars mentioned therein are properly self – assessed by the assessee and are deemed to be proper and correct. Thus, every return of income is considered by the Income Tax Department to be self – Assessed by the Assessee.
Regular Assessment:
The department picks up a certain random number of cases which are assessed by the Income Tax Authorities. In these cases, The Assessing Officer does an in depth analysis of the various claims made by the assessee. If he finds any ambiguity in any of the claims, he calls for further supportive information to confirm that claim. If the Assessing Officer disagrees to the claim made, he can disallow a particular expense and add it back to the Total Income of the assessee. Also, the Income Tax Officer will send u a notice under Section 143 (3) demanding the tax to be paid. The Income Tax Officers also have the right to demand confirmations from parties with which the assessee had transactions. If required he can also ask them to represent in front of their respective Assessing Officers. The parties are obliged to serve the required documents within the time limit prescribed in the notice. Failure on behalf of the parties can lead to penal proceedings against them.
Section 143(3) – Scrutiny Assessment under Income Tax ActCheck Income Tax Refund Status Online 2016-17Appeals to Commissioner of Income TaxAlternate Minimum Tax (AMT) – Meaning, Rate, AMT Credit
However, every Assessing Officer needs to give a Show Cause Notice to the assessee that why should the penalty/ interest/ tax, etc. should not be imposed on the assessee. To this, the assessee or his representative has to attend and present his case explaining the Officer as to why addition should not be made to the Income of the assessee. Once the Assessment is done, a specified (reasonable) period is given to the assessee to pay the balance demand. If the Assessee is not satisfied with the contentions of the Income Tax Officer, he has options to file an appeal or opt for re – assessment. The demand has to submitted in the prescribed format by the Department which should clearly indicate the sum payable by the assessee. If the Assessing Officer fails to submit such a demand, the recovery proceedings will be deemed to be invalid. This was held in the famous case of Shri Mohan Wahi Versus Commissioner of Income Tax. Recommended Articles
Capital gain bonds of NHAI & RECDeduction for School Fees Paid u/s 80cBelated Return & Revised ReturnSection 54 and 54F ‘Residential House’ Controversy Depreciation Rate Chart As Per Companies Act 2013 TDS on RentMethods Calculation of Revenue of Real Estate DevelopersTAN RegistrationIncome Tax Due Dates
