Income Tax Assessment

This states “140A. (1) Where a return has been furnished under section 139 and the tax payable on the basis of that return, as reduced by any tax already paid under any provision of this Act, exceeds five hundred rupees, the assessee shall pay the tax so payable within thirty days of furnishing the return.

(2) After a provisional assessment under section 141 or a regular assessment under section 143 or section 144 has been made, any amount paid under sub-section (1) shall be deemed to have been paid towards the provisional assessment or Income tax assessment in Chennai, as the case may be.

(3) If any assessee fails to pay the tax or any part thereof in accordance with the provisions of sub-section (1), he shall, unless a provisional assessment under section 141 or a regular assessment under section 143 or section 144 has been made before the expiry of thirty days referred to in that sub-section, be liable, by way of penalty, to pay such amount as the Income- tax Officer may direct, so however, that the amount of penalty does not exceed fifty per cent, of the amount of such tax or part, as the case may be :

Provided that before levying any such penalty, the assessee shall be given a reasonable opportunity of being heard,” or Income tax assessment in Chennai calculates the income tax to be paid on his own. The tax department has different forms to be filed for the income tax return. The assessee attributes the self-earned income through multiple sources and sets it against different losses, deductions, or other exemptions, if any, left during the year, and the total income of the assessee is assessed. Then, the assessee subtracts the TDS and Advance Tax from that amount to determine the tax payable on such income. If the tax is still payable, then it is called the self-assessment tax and must be paid before the person files the return of income. This procedure is described as a self-assessment.

Summary Assessment

Summary Assessment is a type of assessment implemented with no human action. Basically, this type of Income tax assessment in Chennai is done by submitting the information by the assessee on his return of income, which is matched and verified against the information with the income tax department assessed and has been approached. During the process, the prudence and accuracy of the data on return are ensured through verification by the department. The online processing of the return, and management of the arithmetical errors, claim corrections, and rejections are corrected automatically. For instance, the taxpayer’s credit for TDS claim is found to be higher than the actual amount when compared with his PAN, according to the department records. Adjustments are made in this regard to increase the taxpayer‘s tax liability.

Regular Assessment

The income tax department authorizes the Assessing Officer or the Income Tax authority to conduct this assessment. No one below the rank of an income tax officer is allowed to carry forward the Income Tax assessment in Chennai. The purpose is to ensure accuracy and correct payment collected from the assessee. Also, it verifies the assessee has not understated his income or overstated any expense or loss or underpaid any calculation or tax.

The CBDT parameters, based on the taxpayer’s assessment for the scrutiny assessment, follow a set of rules that differ according to each case: a. When an assessee is subjected to a scrutiny assessment, the Department’s notice will be received by the assessee well in advance. However, such notice will not be accepted at the return filed for the Financial year. The notice expires up to 6 months from the end of the Financial year.

b. The assessee will be asked to produce the accounts and other evidence to validate the income that is stated in the return. After verification of all the available details, the assessing officer passes an order either confirming the return income filed or making additions. This raises an income tax demand, accordingly the assessee responds.

Best judgment assessment

• If the assessee fails to respond to a notice issued by the department instructing him to produce certain information or books of accounts
• If he/she fails to comply with a Special Audit ordered by the Income Tax authorities
• The assessee fails to file the return within the due date or within the extended time limit allowed by the CBDT.
• The assessee fails to comply with the terms as contained in the notice issued under Summary Assessment.”

Giving an opportunity to defend, the assessee is allowed to put forth his argument, following which the assessing officer passes an order and produces all the relevant materials and evidence available with the department. This is said as the Best Judgement Assessment.

Income Escaping Assessment

When the assessing officer provides enough and strong reasons that are believable, the taxable income has been changed to escaped assessment, the officer holds every right to assess or reassess the assessee’s income. The time limit for issuing a notice to reopen an assessment is 4 years from the end of the relevant assessment Year. Some scenarios where reassessment gets slashed are given below.
“a. The assessee has taxable income but has not yet filed his return.
b. The assessee, after filing the income tax return, is found to have either understated his income or claimed excess allowances or deductions.
c. The assessee has failed to furnish reports on international transactions, where he is required to do so.”
Income tax assessment in Chennai might end quickly for a few taxpayers, while it could require more time and proof for others. When dealing with income tax officers, it is suggested to take the help of a Chartered Accountant to file and finish the case at the earliest. Thus….
The aforementioned statements are to be properly referred to before filing the tax by oneself for one’s own income.