What is the Difference Between Regular Assessment Tax and Self Assessment Tax?

Continue reading to find out what those three options are and which one is best for your investment portfolio.

Each taxpayer who receives an annual income that exceeds the threshold for exemption must file an income-tax statement that includes information on their total income, deductions, and other important details. This document is known as an income tax return (ITR). Lets know the Regular Assessment Tax.

When filing an income tax return, the main goal of the taxpayer is to receive a refund of any excess tax that was paid to the income tax department. A taxpayer can easily and conveniently receive tax refunds by filing an income tax return.

Taxpayers may end up paying more tax than necessary to the Income-tax Department for a variety of reasons. The taxpayer may have made an additional payment because he had already made an advance tax payment. Furthermore, it’s possible that more TDS was deducted from a person’s salary than was legally required to be deducted if TDS had been withheld from that person’s pay. 

Consequently, filing an ITR will help in recovering the refund. When a request is submitted by the taxpayer, the income-tax department processes it. The CBDT has established some guidelines for the processing of an income-tax return request (Central Board of Direct Taxes). 

An income-tax return request might occasionally be chosen for evaluation based on these criteria. Income-tax Assessment is the procedure used by the Income-tax Department to gather data and examine data that has been submitted by a taxpayer.

Forms Of Assessment:

• Self Assessment
• Summary Assessment
• Regular Assessment
• Best Judgment Assessment
• Income Escaping Assessment

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In this blog, we will discuss the difference between the regular assessment tax and on self-assessment.

Difference Between Self Assessment & Regular Assessment

Self Assessment:

Every person who submits a tax return is deemed to have self-reported all of their income, expenses, tax liability, and other related information. This is referred to as self-evaluation. Every year, a predetermined random number of cases are chosen for evaluation. 

Because of this, it is assumed that the information contained in the ones that are not chosen is correctly self-assessed by the assessee and is deemed to be proper and correct. As a result, the Income Tax Department views every income return as having been self-assessed by the Assessee.

Regular Assessment:

The Income Tax Authorities evaluate the cases that the department selects at random. The Assessing Officer thoroughly examines all of the claims that the Assessee has made in these situations. He requests additional supportive information to support any claims that he finds to be unclear so that he can confirm them. 

A specific expense may be disallowed and added back to the assessee’s total income if the assessing officer disagrees with the claim made.

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Additionally, the Income Tax Officer will send you a notification pursuant to Section 143(3) seeking payment of the tax. The power to request confirmations from parties with whom the assessee has transactions is also reserved for the income tax officers.

 If necessary, he may also ask them to speak on their behalf before their respective Assessing Officers. The essential documents must be served by the parties within the time frame specified in the notice. If either party fails, legal action may be taken against them.

However, each Assessing Officer must issue a Show Cause Notice to the Assessee outlining the reasons why the assessed should not be subject to a penalty, interest charge, tax, etc. To this end, the assessee or his representative must appear and present his case to the officer, arguing that the assessee’s income should not be increased.

After the assessment is completed, the assessee is given a set (reasonable) amount of time to satisfy the balance demand. The Assessee has the opportunity to seek an appeal or request a reassessment if he is dissatisfied with the Income Tax Officer’s arguments. 

The demand must be submitted using the Department’s standard format and include a clear statement of the amount the assessee is required to pay. The recovery actions shall be ruled invalid if the Assessing Officer neglects to file such a demand. This occurred in the well-known Shri Mohan Wahi v. Commissioner of Income Tax case.

How to Pay Regular Assessment Tax?

The procedures for paying self-assessment tax and regular assessment tax are similar. The only distinction is that in the “Type of payment” field, you must choose “(400) Regular Assessment tax”

For income-tax payments, Challan No. 280 is required. Challan No. 280 is required to complete the payment, which may be made in the form of Self Assessment Tax, Advance Tax, or Regular Assessment Tax. 

• In the first step, you can choose Challan 280 by going to the Income Tax Department’s tax information network.
• In the next step, you can choose to pay your taxes on the government website.
• Filling out your personal information is the next step.
• First, you must choose (0021) Income Tax (Other than Companies).
• The PAN information must then be entered.
• The specific financial year for which you are paying your income taxes must be chosen.
• Next, you must provide your address.
• ‘It’s crucial to carefully fill out “Type of Payment,” which is very important.
• If you are paying advance tax, you must choose “(100) Advance Tax.”
• If you are paying Self Assessment tax, choose “(300) Self Assessment Tax.”
• For the Regular Assessment Tax payment, you must select “(400) Tax on Regular Assessment.”
• There are two payment options available: debit card or net banking. Select the preferred payment method.
• The following step requires you to enter the Captcha code and click “Proceed.”
• You will now be taken to the payment page for your bank based on the method of payment you chose. You can click “Confirm” after double-checking every piece of information below.
• Your tax receipt will appear on the screen after you make the payment. The tax receipt must be saved for future use.
• To indicate that your taxes have already been paid, use the BSR Code and Challan Serial Number from the tax receipt in your income tax return information.

Conclusion

We hope that after reading the information provided above, you have understood that regular assessment tax is different from self-assessment. By using the regular assessment tax form, the taxpayer would have the chance to support the expenses, income, and claimed deductions and exemptions.

Regular Assessment tax can also be paid conveniently and easily online without too much hassle. For more information, you can contact Vakilsearch, as our team of legal professionals will solve all your queries and make the entire process hassle-free for you. 

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Other Related Articles:

• Basic Principle of Income Tax Assessments You Need to Know
• What is the Assessment or Reassessment Notice of the Income Tax Act ?