Income Tax Assessment

At the end of every financial year, people and entities are required to file an income tax return, calculate their earned income, and pay the tax. In short, it is the estimation of an amount assessed while paying Income Tax by the assessee himself or by an income tax officer. There are seven types of assessment.

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Overview of Income Tax Assessment in Chennai

This states, “140A. (1) Where a return has been furnished under section 139, and the tax payable based on 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 income tax return.

The assessee affiliates self-earned income from multiple sources and fit it against different losses, deductions, or other exemptions if there are any left during the year. 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, it is called the self-assessment tax and must be paid before the person files the return of income. This procedure is said to be an assessment.

Summary Assessment

Summary Assessment is a type of assessment that is 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 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 a TDS claim is found to be higher than the actual while compared with his PAN, according to the department records. Adjustments are made in this regard to increase the taxpayer‘s tax liability. At the completion of the aforementioned adjustments, if the assessee is left with a tax balance, it has to be paid, and an intimation under Section 143(1) will be sent to him. Accordingly, the assessee must respond.

Best Judgement Assessment

a. If the assessee fails to respond to a notice issued by the department instructs him to produce certain information or books of accounts

b. If he/she fails to comply with a Special Audit ordered by the Income tax authorities

c. The assessee fails to file the return within due date or such extended time limit as allowed by the CBDT

d. The assessee fails to comply with the terms as contained in the notice issued under Summary Assessment

Giving an opportunity to defend, the assessee’s 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 few taxpayers, while it could require more time and proofs for others. When dealing is proper with income tax officers, it is suggested to take the help of a Chartered Accountant to file and finish off the case at the earliest. Thus.... The aforementioned statements are to be properly referred before filing the tax by one’s own self for their income.