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ASSESSMENT PROCEDURE
DIFFERENT TYPES OF RETURNS
Particulars Voluntary Loss Belated Revised Defective
return return return return return
Section 139(1) 139(3) 139(4) 139(5) 139(9)
Who is 1. company & Assessee If fails to furnishIf there is If the following details are not
liable? / firm who has the return with in any error furnished in the return
When - mandatory incurred loss time limit allowed or 1. All columns in the
liable? 2. others and wants to u/s 139(1) or failsomission in return not filled.
Total income carry forward to file with in thethe return 2. statement of income
before loss under time limit given infiled u/s not enclosed
allowing the head notice u/s 142(1) 139(1) or 3. proof of payment of tax
chapter VI A or PGBP, loss u/s 142(1) not attached
exemption u/s under the 4. return is not
10A/ head capital accompanied by audit
10B/10BA gains. report u/s 44AB
exceeds the 5. financial statements not
basic filed
exemption. 6. Partners or proprietors
capital A/C not
furnished.
Time limit Not subject to audit- 31st July Either before completion of Rectify the defect within 15
of relevant AY assessment (sec.144) or 1 days on receipt of intimation
Subject to audit- 30th Sept. of year from the end of the of defects from the AO or
relevant AY relevant AY whichever is such extended time by AO.
earlier.
Special From AY 2007- This return 1. loss cannot be Loss return Consequences of non
considerat 08 it is mandatory carried forward can be rectification of defect
ions mandatory for only for carry 2. it cannot be revised. • The return is to be
companies forward of revised Belated treated as invalid return
and firms current year 3. liable for return • Rectification before
which are loss and not interest cannot be completion of
liable for audit for prior 4. return filed revised.

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to file e-return period after the end of return can assessment

losses. RAY liable for be revised
penalty of 5000 any no of
5. Deduction U/S times
80 within the
IA/IAB/IB/IC/ID/IE due date
and 10A/10B not
available
Explanation to returns:

1. Who are subject to audit?

i) A company
ii) A person (other than a company) whose books are required to be audited under the income tax
Act or any other act for the time being in force
iii) A working partner of a firm whose accounts are required to be audited under the income tax Act
or any other act for the time being in force

2. What is Notice u/s 142(1) ?

If the assessee not furnished the return of income with in the time prescribed u/s 139(1) or before the
end of relevant AY, then the AO may issue a notice requiring him to furnish return with in the time
prescribed in the notice.

3. Sec. 139(4B) – Return of income of political party. Due date: 30th Sep of AY. Return can be revised.

4. Sec 139(4C) – Return of income of certain specified institutions. Due date: same as sec 139(1)
• Scientific research association
• News agency
• Associations or institutions u/s 10 (23A)/ (23B)/23(C)
• Trade union u/s 10 (24)(a)/(b)

5. Sec 139(4D) – Return of Scientific research institutes, University or college. Due date: same as sec
139(1)

6. Sec 140 – Who shall sign the return?

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• Individual – Himself/ If absent (authorized person)/ If incapacitated (Legal guardian/any person

competent to act)
• Firm – Managing partner/ If Managing partner not available or not able to sign ( Any partner)
• HUF – Karta / If karta not available or incapacitated (Adult member of the family)
• Company – MD/ If MD not available or not able to sign (Any director)/ If company being wound up
(liquidator)/
If company taken over by Govt. (Principal Officer)/ Non resident (Authorized power
of attorney)
• Political party – CEO of the party
• Local authority – Principal Officer

DIFFERENT TYPES OF ASSESSMENT

Particulars Summary Regular/scru Best Income Protective Search
assessment tiny judgment escaping assessment assessment
assessment assessment assessment
Section 143(1) 143(3) 144 147 143(3) or 144 153A
as per court
order
The AO can The AO shall The AO after Where the AO A protective Assessment
complete the take into considering all has reason to assessment is where a
assessment account all relevant believe that made in a search is
without passing relevant material which any income case where initiated or
Meaning a regular materials he has chargeable to there are books of
assessment gathered by gathered is tax has doubts accounts are
order. the him and also under an escaped relating to requisitioned.
assessment is the evidence obligation to assessment true ownership
completed on produced by make for any AY. of income.
the basis of assessee and assessment to
return submitted shall make an the best of his
by assessee assessment. judgment.
Description Income If assessment No Income which
computed after made with assessment if has escaped
making the out notice opportunity of assessment

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adjustments (i) u/s143(2), being heard is and which

Arithmetical It is void. Sec not given by comes to his
errors 143(3) is serving a notice
(ii) incorrect applicable notice. If subsequently.
claim if apparent only if return 142(1) is
from the return is filed. issued then
not necessary
1.if any person
fails to make
return u/s
139(1),(4)or
(5)
Return of 2. if any Return filed
income 139 or 142(1) 139 or 142(1) person fails to for notice u/s 139 or 142(1) 139 or 142(1)
filed under comply with 148
sec. notice u/s
142(1)or
142(2A)
3. filed notice
but fails to
comply
with143(2)
4. if AO is not
satisfied about
the
correctness of
acc.

Issue of No notice Notice to be Show cause Notice u/s 148 u/s 143(2) or u/s 153 only
notice issued u/s notice u/s 144 144
143(2)
Any income
escaped
Notice shall assessment—
be served With in with in 4Y With in With in
Time limit N.A within 6 reasonable from the end reasonable reasonable
for issue of months from time before of RAY time before time before

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notice the end of the completion of completion of completion of

financial year assessment Income assessment assessment
in which escaped
return of assessment is
income is 1 lakh or more
filed —with in 6Y
from the end
of RAY

Time limit One year from 21 Months 21 Months 9 months from 21 Months 21 Months
for the end of the from the end from the end the end of the from the end from the end
completion financial year in of the of the FY in which of the of the FY in
of which return of relevant AY relevant AY notice u/s 148 relevant AY which last
assessment income is filed is served.
search has
made or
books
received.

Explanation to Assessment:

1. Sec 140A – Self assessment. Amount to be paid by way of this assessment is as follows:
Income tax (including SC + EC) on the income mentioned in return XXX
Add: Interest u/s 234A – If return is not filed or filed after due date XX
Less: Relief u/s 89/90/90A/91 XX
Less: MAT credit u/s 115JAA XX
Less: TDS/TCS XX
Less: Advance tax XX

2. Distinction between notice u/s 142(1) and notice u/s 143(2) – Very Important
Section 142(1) Section 143(2)

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It is a notice to file return/submit books of
accounts/other information
Mere issuance of notice does not enforce any
assessment
No time limit
Notice is issued if return u/s 139(1) is NOT filed
It is a notice for making scrutiny assessment u/s
143(3)
Assessment u/s 143(3) is not possible if this notice
is not given
Time limit of 6 months
Notice is issued only if return is filed.

3. Audit u/s 142(2A)

• Ordered when the AO is of the opinion that having regard to the nature and complexity of accounts,
it is necessary to do so.
• Audit should be done by an auditor nominated by chief commissioner/commissioner
• Form no. 6B
• Expenses of audit borne by Central government

Note: Lean the differences between audit u/s 142(2A) and audit u/s 44AB – An important question.

4. Sec 222 – Certificate issued by AO to tax recovery officer to recover the amount from the assesse if
assesse is in default or is deemed to be in default in one or more of the following modes:
• Attachment and sale of assesses movable property
• Attachment and sale of the assesses immovable property
• Arrest of the assesse and his detention in prison
• Appointing a receiver for the management of the assesses movable and immovable properties.

Note: I have take care to avoid all errors in this document and if you find any errors please forgive me.
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