Assessment Procedures
This domain tests return filing, processing, scrutiny and the consequences of non-compliance.
Core rules
- A return of income is filed under section 139 within the due date: generally 31 July for non-audit individuals and 31 October for assessees requiring audit. Belated and revised returns are permitted within the statutory time, subject to conditions; an updated return under section 139(8A) carries additional tax.
- A defective return may be intimated under section 139(9); the defect must be corrected within the allowed period. Failure can make the return invalid.
- Summary processing is done under section 143(1) by comparing the return with the department’s records. Scrutiny assessment under section 143(3) follows a notice and hearing. Best-judgment assessment under section 144 is made when the assessee fails to comply. Reassessment for income escaping assessment is governed by section 147 and the applicable notice provisions.
- Faceless assessment and electronic proceedings are standard. Self-assessment tax is paid under section 140A before filing the return.
Worked example
An individual with non-audit income files the return on 20 December instead of 31 July. The return may be accepted as belated, but interest under section 234A applies for the delay in filing, and late-filing fee under section 234F may apply. The assessment is still possible; filing late does not make the income immune from scrutiny.
Traps
Distinguish due date from actual filing date; a revised return is not automatically a fresh limitation; comply with 139(9) notices; summary intimation is not the same as scrutiny; updated returns have additional-tax conditions.