Thank you for your response
Also kickstart your investing journey with mutual fund plans and much more
Paying your taxes is a good thing, although it does pinch to pay huge amounts in taxes from your hard earned money. Therefore, citizens sometimes resort to unfair means to not disclose all the income and pay lower taxes. The income tax authorities have the powers to assess or reassess your income if they are of the view that any of your income has escaped assessment.
Post filing a tax return, the returns are automatically processed at the Central Processing Centre (CPC) in Bangalore. The software automatically selects certain cases for further scrutiny by the Assessing Officer (‘AO’) based on certain criteria fixed by the Central Board of Direct Taxes (CBDT)
Raghav filed his income tax return on 5th July 2017 for the year ending 31st March 2017. The return has been filed in FY 2017-18. Therefore, Raghav can be issued an assessment notice anytime before 31st March 2019.
The entire proceedings from the time a taxpayer receives a notice to the time the assessing officer passes the final assessment order determining the final taxable income of the taxpayer is called an assessment proceeding.A scruntiy assessment notice can be issued with one year from the end of the financial year in which the return of income has been filed.
If an AO has any reason to believe that any income chargeable to tax has escaped assessment, the AO has authority to reopen the case for scrutiny.Scrutiny proceedings in the case of Mr Rohan for FY 2015-16, have concluded and the tax authorities are in agreement with the income Rohan has disclosed in his return. Subsequently, the assessing officer receives some information with regard to a sale of land that Rohan has carried out during the FY 2015-16, capital gains from which, was not disclosed by Rohan in his return for FY 2015-16. On the basis of such information, the AO can reopen the assessment.
As per law, a valid notice must always be served before an assessment or reassessment. In case of reassessment the AO must record the reasons for doing so.
Time limit for completion of assessment and reassessment is 9 months form the end of the financial year in which the notice was served.
Yes, if the income escaping assessment is more than Rs.100000 and for income earned outside India, notice can be served beyond 4 years upto 6 years or 16 years respectively.