What is Assessment Year in income tax return
Do you want to know what is Assessment Year is? The assessment year (AY) is the year that comes after the previous year. This is the year in which the income earned is assessed by Income Tax Department. The year in which income is assessed is known as the assessment year. The period for AY starts from 1st April till 31st March.
What is the assessment year under Income Tax Act?
“Assessment Year” means 12 months period starting from 1st April every year. The Assessment Year is the financial year of the Income Tax Department during which the income of a person is assessed or checked to tax.
What is the current assessment year of FY 2021-22?
For the income earned during the financial year 2021-22, the assessment year is 202-23
What is the assessment year for example?
Assessment Year is the year when ITR is filed after earning Income from various sources In the previous year, It is the year when income tax paid is evaluated. Example For YE 2021-2 the Assessment Year will be 2022-23
What is scrutiny assessment?
Scrutiny assessment is an examination of the ITR of an assessee to check the income declared and the expenses, deductions, etc. claimed in the ITR this checking is based on evidence provided by the assessee.
What is the process of scrutiny Assessment?
The process of scrutiny starts with the notice from the tax department. ITO conducts inquiries as required necessary. The basic reason for this exercise is to check income declared and other deductions claimed by the assessee.
How returns are selected for scrutiny?
The tax department checks the returns and if it feels that information given by the assessee is incorrect then the scrutiny assessment notice is sent for detailed investigation.