What is a tax assessment?
Reviewed by Ranga & Company
Tax assessment: Tax assessment is the process by which the Income Tax Department checks a return and fixes the taxpayer's final income and tax, either automatically or through a detailed scrutiny.
At a glance
- Summary
- Automated processing, ending in a 143(1) intimation
- Scrutiny
- Detailed review after a 143(2) notice, mostly faceless
- Best judgment
- Section 144, when a taxpayer doesn't respond
- Reassessment
- Sections 147–148A, generally within 3 years 3 months (5 years 3 months if ₹50 lakh+ escaped)
- Replies
- e-Proceedings on incometax.gov.in
Types of assessment
| Type | Section | What triggers it |
|---|---|---|
| Self-assessment | 140A | You pay balance tax before filing |
| Summary | 143(1) | Every return, automatically |
| Scrutiny | 143(2) / 143(3) | Selection based on risk parameters or information mismatches |
| Best judgment | 144 | No return or no response to notices |
| Reassessment | 147 / 148A / 148 | Information suggesting income escaped tax |
Faceless assessment
Most scrutiny assessments are faceless: notices and replies are exchanged through e-Proceedings, and personal hearings, if allowed, are held by video conference. You rarely need to visit the Jodhpur income tax office at Paota.
Common mistakes
- Treating a 143(1) intimation with a demand as final instead of checking it
- Missing the response date on a 143(2) or 148A notice
Frequently asked questions
What is a 143(1) intimation?
It is the result of the automated processing of your return. It confirms the return, or shows a refund, demand or adjustment. A demand you disagree with can be corrected through rectification.
How long can the department reopen an assessment?
For notices since 1 September 2024, generally within 3 years and 3 months from the end of the assessment year, or 5 years and 3 months if escaped income is ₹50 lakh or more.
Do I need to visit the income tax office for scrutiny?
Usually not. Scrutiny is mostly faceless and handled online, with hearings by video conference if allowed.
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