At the end of every financial year i.e.

, the year in which an Assessee has an income), an assessee has to show his amount of income and tax upon the same within a specified time when his income exceeds the maximum non-taxable limit. The income so stated and tax upon it has to be filled in a form before the Income Tax Department. Return of loss: Return of loss can also be filed by an assessee. Regular assessment: Based on the return chargeable to tax declared by assessee intimation is sent to the assessee to inform him about the tax payable or refundable to him. Best judgment Assessment: If an Assessee does fails and /or neglects to file his return after the due date , under such circumstances the Assessing Officer (AO) may issue a notice under section 142(1) of the asking the assessee to file his return of income. This notice is issued under section 142(1) of the proceeds Tax Act. In case the Assessee fails to comply with this notice, the AO can complete the assessment i.e., compute his income and determine his tax liability. This is called Best Judgment Assessment under section 144 of the excise Act. Types of best judgment: 1. Compulsory best judgment assessment. It is done in cases of non-co-operation by the assessee or when the assessee is in default in supply of any information. 2. Discretionary best judgment assessment. It is done in cases where the assessing officer is not satisfied about authenticity of the accounts of the assessee or where no method of accounting has been used by the assessee.

Assessment of income in one year starts in the following year. The following year is called the Assessment year. The year of assessment is called the previous year. Other types of assessment:

1. Self assessment This is provided in Section 140 A of the excise Act. When a return is furnished, the assessee has to pay tax if at all payable. But the assessee gets the scope of being heard. He may also be asked to get his accounts audited. 2. Summary assessment - This is provided in Section 143(1) of the profits Tax Act. If based on a return any sum is due, the assessee is intimated to make payment. If any refund is due, then it is granted in favor of the assessee. 3. Assessment in response to an order - This is provided in Section 143(2) of the due Act. Assessment in response to an order is that assessment which is done after receiving a notice from the due authorities. 4. Reassessment - This is provided in Section 147 of the tariff Act. If the excise Officer is of the opinion that any income has not been charged he may reassess the income. Precautionary assessment: Where there is confusion about who has received the income, the assessing officer may start proceedings against the said persons to resolve the issue as to who is liable to pay the tax.

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