Comprehensive Guide on Income Tax Assessment Proceedings

As per Income Tax Law, every taxpayer must furnish the details of their income to the income tax department by filing a tax return. Once the tax return processing is completed by the income tax department, the department examines the return for correctness. This process of examining a return of income is called Income Tax Assessment.

There are four types of Income Tax Assessment carried out by the income tax department:

Types of Income Tax Assessment

Summary-Assessment {under section 143(1)}:

This is the first stage of tax assessment where processing of return has been carried out, to rectify the mistake which apparent from records.

Scrutiny-Assessment {under section 143(3)}:

In scrutiny assessment, the assessment is done in detailed manner.

Best Judgment {under section 144}:

The assessing officer can compute tax liability based on best judgment, if where an income tax return has not been filed or where respond has not submitted in reference to notice issued.

Income Escaping-Assessment {under section 147}:

Notice shall be issued (under section 148) if assessing officer has reason to believe/information which suggest that the income chargeable to tax has escaped assessment.

How MBG Supports Income Tax Assessment Proceedings

MBG Corporate Services assists with Income Tax Assessment for expatriates and corporate clients through:

• Handling income tax assessment proceedings and representing before Income Tax Authorities.
• Addressing queries, responding to withholding tax notices, and providing necessary documentation to support the filed return during the assessment process.
• Representation before tax appellate authorities [Commissioner (Appeals){CIT(A) and Tax Tribunals}] including filing & contesting, appeals and drafting submission.
• Strategic guidance on advance rulings & Representation before Authority for Advance Rulings (AAR).
• Litigation support before Supreme Court (SC) & High Courts (HCs) through in-house & external expert legal counsels.
• Representation before Courts/ Tax authorities in matters related to search, survey and Income tax Settlement Commission.