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Types of Income Tax Assessment |
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There are different types of income tax assessment. Income Tax assessment is an estimation for an amount assessed while paying Income Tax. Income Tax is a compulsory contribution that is needed for the support of a government. Types of Income Tax assessment includes Self assessment, Regular assessment, Best judge assessment, Income Escaping assessment and Precautionary assessment.
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Self Assessment
This is the most common among the different types of income tax assessment. The assessee himself makes a self assessment and pay the tax on the basis of the income tax returns furnished. The tax paid by the taxable individual under self assessment is equivalent to have been paid towards regular assessment.
Regular Assessment
Based on the return of income chargeable to tax given by the taxable individual, an intimation is sent to him informing him about the tax or interest payable or refundable to him.
Best Judgment Assessment
In a best judgment assessment the assessing officer base the assessment according to his judgment. There are two types of judgment assessment :
Compulsory best judgment assessment is made by the assessing officer in cases of non co-operation on the part of the taxable individual or when he is in default regarding supplying information.
Discretionary best judgment assessment is done in such cases when the assessing officer is not satisfied about the correctness of the accounts of the assessee. This type of income tax assessment is also done when no method of accounting has been regularly and consistently employed by the assessee
Income Escaping Assessment/ Re-assessment
If the assessing officer thinks that any income chargeable to tax has escaped assessment for any assessment year he can opt for Re-assessment. This process of assessment of income tax is done after sending a notice to the assessee.
Precautionary Assessment
This type of income tax assessment is done when it is not sure as to who has received the income. In that case the assessing officer can start proceedings against the persons to determine who is actually responsible to pay the tax.
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