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Basically assessment
is an estimation for an amount assessed while paying Income Tax. It is a
compulsory contribution that is required for the support of a
government. It is generally of the following types.
Self
assessment
The assessee is required to make a self assessment and pay the tax on
the basis of the returns furnished. Any tax paid by the assessee under
self assessment is deemed to have been paid towards regular assessment.
Regular
assessment
On the basis of thereturn of income chargeable to tax furnished by the
assessee an intimation shall be sent to the assessee informing him about
the tax or interest payable or refundable to him.
Best
judgement assessment
In a best judgement assessment the assessing officer should really base
the assessment on his best judgement i.e. he must not act dishonestly or
vindictively or capriciously. There are two types of judgement
assessment :
- Compulsory best judgement
assessment made by the assessing officer in cases of
non-co-operation on the part of the assessee or when the assessee is
in default as regards supplying informations.
- Discretionary best judgement
assessment is doen even in cases where the assessing officer is not
satisfied about the correctness or the completeness of the accounts
of the assessee or where no method of accounting has been regularly
and consistently employed by the assessee
Income
escaping assessment or re-assessment
If the assessing officer has reason to believe that any income
chargeable to tax has escaped assessment for any assessment year assess
or reassess such income and also nay other income chargeable to tax
which has escaped assessment and which comes to his notice in course of
the proceedings or any other allowance, as the case may be.
Precautionary
assessment
Where it is not clear as to who has received the income, the assessing
officer can commence proceedings against the persons to determine the
question as to who is responsible to pay the tax. |
