What is Assessment Year in income tax return
The assessment year (AY) is year which comes after the previous year. This is the year in which the income earned is assessed by Income Tax Department. The year in income is assessed is known as assessment year. The period for AY starts from 1st April till 31st March.
What is assessment year under Income Tax Act?
“Assessment Year” means 12 months period start from 1st April every year .The Assessment year is the financial year of Income Tax Department during which 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 assessment year with 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 is evaluated. Example For YE 2021-2 the Assessment Year will be 2022-23
What is scrutiny assessment?
Scrutiny assessment is examination of 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 assesse.
What is the process of scrutiny Assessment?
The process of scrutiny starts with the notice from tax department. ITO conducts inquiries as required necessary. Basic reason of this exercise is to check income declared and other deductions claimed by assesse.
How returns are selected for scrutiny?
The tax department checks the returns and if it feels that information given by assessee is incorrect then the scrutiny assessment notice is sent for detail investigation.