What is Income Tax Assessment?
Income Tax Assessment is the process where the Income Tax Department examines the correctness of income declared by taxpayers in their returns. This can be a routine verification or a detailed scrutiny if the return is selected for closer inspection. The purpose is to ensure that tax liabilities are accurately declared and paid. Non-compliance or discrepancies can lead to further investigations, penalties, or legal proceedings.
Types of Income Tax Notices
Income Tax Department issues various types of notices relating to assessments and scrutiny, including:
- Notice under Section 143(1): Intimation regarding processing of your return.
- Notice under Section 143(2): Scrutiny notice for detailed examination of your return.
- Notice under Section 142(1): Request for additional information or documents.
- Notice under Sections 148/147: For reassessment if income has escaped assessment.
- Notice under Section 153A: Related to income assessment following a search or seizure.
Scrutiny Assessment (Section 143(2))
Scrutiny under Section 143(2) is a thorough examination conducted by the Assessing Officer to verify the accuracy of income, deductions, and tax payments in the filed return. It involves physical or electronic scrutiny requiring submission of supporting documents and explanations. This process may include multiple hearings and requests for additional information.
How We Assist in Scrutiny Handling
At Agarwal Avinash & Co, we provide end-to-end support for your income tax scrutiny cases, including:
- Expert review of notice or assessment orders.
- Preparation of detailed responses with documentary evidence and legal backing.
- Representation during hearings before Assessing Officers and Commissioners of Income Tax (Appeals).
- Managing penalty defenses and negotiating settlements if applicable.
- Assistance with rectification applications, stay or appeal filings, and prosecution defense.
- Post-assessment compliance handling including tax payment and documentation.
Step-by-Step Scrutiny Handling Process
- Notice Intake & Timeline Management
- Immediate docketing of the notice and communication of deadlines.
- Document Collection & Forensic Review
- Auditing books of accounts, bank statements, tax returns, TDS/TCS certificates, and contracts.
- Drafting Reply & Evidence Compilation
- Preparing technical and factual replies supported by documents and legal precedents.
- Submission & Representation
- Filing replies promptly; attending hearings and securing adjournments if needed.
- Appeals & Rectifications
- Drafting and filing appeals and rectification applications for adverse assessments.
- Coordination with Legal Counsel
- Engaging senior advocates for complex litigation and Supreme Court matters.
- Post-Assessment Compliance Support
- Facilitating tax payment, interest calculations, and legal documentation closure.
Required Documents for Scrutiny Handling
- Books of accounts and finalized financial statements.
- Copies of Income Tax Returns for concerned years.
- GST returns, TDS certificates, bank statements, contracts, and invoices.
- Prior assessment orders or past correspondence with the tax department.
- Documents supporting claimed deductions, exemptions, and disclosures.
Why Choose Agarwal Avinash & Co for Income Tax Assessment Assistance?
- Experienced Chartered Accountants and tax litigators specializing in income tax scrutiny.
- Proven track record of successfully handling complex scrutiny and appellate proceedings.
- Timely, accurate, and professional communication with assessing officers and appellate authorities.
- Transparent fee structure and detailed status updates throughout the case lifecycle.
- Nationwide services catering to individuals, startups, SMEs, and large corporates.
FAQs
1. What triggers an income tax scrutiny?
Certain returns are selected randomly, or due to inconsistencies, high transactions, or specific departmental strategies.
2. How soon should I respond to a scrutiny notice?
Replies should be submitted within the stipulated time frame mentioned in the notice, generally 30 days from receipt.
3. Can Agarwal Avinash & Co represent me before tax authorities?
Yes, we provide full representation services, including hearings and appeals.
4. What happens if I miss the deadline for scrutiny response?
Delayed responses may lead to penalties or the department proceeding ex-parte.
5. Do you help with tax payment post-assessment?
Yes, we assist in tax calculation, payment, and compliance after the assessment order.
6. Is there a way to avoid scrutiny?
Compliance and accurate filings reduce scrutiny probability but do not eliminate it entirely.
Protect Your Interests with Agarwal Avinash & Co
Handling income tax scrutiny requires expertise, timely action, and detailed documentation.
Let Agarwal Avinash & Co professionals guide you through the entire process with precision and confidence.
Call / WhatsApp: +91 - 9743956549
Email:
caavinash1985@gmail.com
Visit:
www.caagarwalavinash.com
Agarwal Avinash & Co - Your Partner in Income Tax Compliance and Dispute Resolution