7 Types of Income Tax Assessments You Need to Know

7 Types of Income Tax Assessments You Need to Know

Introduction :

By the deadline set by the Income Tax Act of 1961, everyone in a taxable category must submit their returns. The Income Tax Department checks the accounts and determines whether or not the income is taxable after the returns are submitted. In the tax system, this is referred to as a self-assessment. The “assessment” is the procedure by which the Income Tax Department examines an ITR filing.

In the context of income tax, there are seven significant types of assessment in income tax , each of which will be briefly discussed in this post.

Types of Income Tax Assessments

(1) Self-assessment – Section 140A This is the type of income tax assessment in which the assessee personally calculates the tax and pays the amount they believe is due, as the name suggests. (2) Summary Assessment under Section 143(1) The assessment under Section 143(1) is similar to the initial online review of income tax returns. Tax payable must be given after taking into account TDS and subtracting advance tax paid. The IRS sends the taxpayer a notice in accordance with Section 143(1). You will receive a comparative income tax calculator from the department. In the income tax assessment, the total income or loss is calculated.

(3) Scrutiny Assessment in accordance with Section 143(3) Scrutiny assessment is the evaluation of a return filed by an assessee by providing the assessee with the opportunity to use evidence to back up the declared income and expenses, as well as claims for deductions, losses, exemptions, and so on. It is managed by the committee using a single work plan. In addition to carrying out specific tasks, the committee also establishes informal panels or working groups for in-depth activities.


In order to ascertain whether the assessee accurately reported their income on the return, the assessing officer is given the opportunity to conduct an investigation. The claims for benefits like deductions and exemptions are legal and true. The assessing officer prepares their own assessment for the assessee in the event of any omissions, contradictions, inaccuracies, or other errors, taking into account all relevant circumstances.


(4) Assessment of the Best Judgment under Section 144 In the context of income tax law, “The Opinion” or “The Calculation” refers to the assessing officer’s assessment of the assessee’s income. best judgement evaluation.” In the event of a best judgement review, the evaluating officer will choose wisely. In their assessment, the assessee will not be dishonest or hostile toward the officer.


(5) Protective Assessment This type of assessment focuses on those made to “protect” the interests of the revenue. However, there is no provision in the income tax legislation to impose income tax on anyone other than the person to whom it is due. If it is unclear who among a few probable individuals is actually liable to pay the tax, the authorities may conduct a protective or alternative assessment.


When conducting a protective assessment, the authorities merely conduct an evaluation and record it on paper until the circumstance is resolved. It is possible to issue a protective order of assessment but not one of penalty.


(6) Re-Assessment (or Income Escaping Assessment under Section 147): If the assessing officer believes that income subject to tax has escaped assessment for any assessment year, they will use Section 147 to conduct an income escaping assessment. In addition, it grants them authority to reevaluate or recalculate income, turnover, and other figures that they have overlooked. Under Section 147, an assessment is made with the intention of bringing any income that was not included in the initial assessment into the tax net.


(7) Assessment in the Event of a Search Per Section 153A In this kind of income tax assessment, the Assessing Officer Will:


Giving such a person notice necessitates providing it within the notice’s specified time frame. The income return for each of the six assessment years, which is confirmed in the prescribed format, was mentioned in clause (b). Including any additional information that may be required, and, to the extent possible, the provisions of this Act shall apply as if the return were a return required to be furnished under Section 139;

The assessor reassesses the total income of the six assessment years preceding the one in question, which is relevant to the year in which the search or requisition is made.


A notice is required to be filed under Section 153A for six years prior to the year of the search, not for the year of the search, and there is no return required for that year. Only submit a regular return under section 139.


assessments of income tax of any kind ought to be taken seriously. Additionally, accurate preparation of the income tax return is required in order to avoid any type of tax assessment in front of the assessing officer. Please get in touch with the tax professionals at Vakilsearch if you are uncomfortable interacting with income tax authorities. We can also assist you in obtaining your ITR: submitted in as little as two business days at https://www.incometax.gov.in/iec/foportal/ We also take care of all of your paperwork and keep everything open throughout the process.


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