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What Are the Basic Principles of Evaluation?

Explore the core principles of ITR assessments: self-assessment, scrutiny, best judgment & more. Dive into each procedure's implications. Understand ITR inside out.

The IT Act of 1961 requires individuals within a taxable category to submit their tax returns by the specified deadline. After the submission of the returns, the IT Department verifies the accounts and determines the tax liability. This process is commonly known as IT. In simpler terms, it refers to the examination conducted by the IT Department to review the filing of tax returns.

If your business is operated by a single individual then you should file Proprietorship Tax Return Filing

(1) Self-assessment – u/s 140A

As the name suggests this is the type of ITA where the assessee personally calculates the tax themselves, usually accompanied by payment of the amount they believe is due. After taking TDS and subtracting advance tax paid, tax payable is required to be given under Section 139, Section 142, Section 148, or Section 153A 

(2) Summary Assessment u/s 143(1)

The evaluation under Section 143(1) is similar to the initial review of Income tax returns online. The taxpayer receives an intimation u/s 143(1) from the IRS. The department will send you a comparative IT calculator. The overall income or loss incurred is computed in the ITA.

You can also use Vakilsearch free online ITR calculator, its fast, reliable and accurate

(3) Scrutiny Assessment u/s 143(3)

Scrutiny assessment is the evaluation of a return filed by an assesse by providing an opportunity for the assessee to support the declared income and expenses, as well as claims of deductions, losses, exemptions, and so on, in the return using proof. The committee manages it using a single work plan. The committee undertakes specific work, as well as forming informal panels (for in-depth activities) or working groups.

The assessing officer is given the chance to conduct an investigation in order to determine if the assessee correctly reported their income in the return. The claims for deductions, exemptions, and other benefits are legal and factually correct. In case of any omissions, contradictions, inaccuracies, or other errors, the assessing officer prepares their own evaluation for the assessee, taking into account all relevant circumstances.

(4) Best Judgment Assessment u/s 144

The term ‘best judgment assessment’ pertains to the judgment made by the assessing officer regarding an individual’s income under IT regulations. In this kind of evaluation, the officer bases their decision on their best understanding and judgment. The taxpayer is expected to be truthful in their declarations and should not oppose the officer’s evaluation.

LLP ITR filing is necessary to comply with the law, avoid penalties, and report the LLP’s income, profits, and losses to the government.  

(5) Protective Assessment

This is a form of assessment aimed at safeguarding the interests of revenue. Although IT laws don’t permit imposing taxes on anyone other than the rightful person, authorities can carry out a protective or alternative evaluation when there’s uncertainty about which individual among a few possible candidates should actually bear the tax liability.

Authorities evaluate a situation and document their findings until a resolution is reached. They can issue a protective assessment order, but not a penalty order.

(6) Re-Assessment (or) Income Escaping Assessment u/s 147

If the evaluation officer believes that taxable income has been overlooked for any assessment year, they have the authority to carry out a review under Section 147. This section allows them to reassess or recalculate income, turnover, and other figures that might have been missed earlier. The purpose of an evaluation under Section 147 is to ensure that any previously unassessed income is included in the tax framework.

(7) Assessment in Case of Search u/s 153A

The assessing officer will do the following in this type of ITA:

  • Giving such a person notice requires furnishing it within the time frame mentioned in the notice. Clause (b) referred to the income return for each of the six assessment years, which is confirmed in the prescribed format. Setting forth such other particulars as may be prescribed, and the provisions of this Act shall apply as if such return were a return required to be furnished under Section 139, to the extent possible; 
  • The assessor re-evaluates the total income for the six years directly before the assessment year related to the prior year in which the search or request occurred.

Under Section 153A, a notice is issued for 6 years preceding the search, not for the year of the search, and no return is required to be filed (for the year of the search). Only file a regular return u/s 139.


ITA of any kind should be treated seriously. Furthermore, to avoid any form of ITA in front of the assessing officer, one must prepare the ITR accurately. If you are uncomfortable interacting with IT authorities, please contact the tax professionals at Vakilsearch. Further, we can help you get your ITR: submitted in as little as two working days. In addition, we handle all of your paperwork and provide complete transparency throughout the process.

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