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Income tax assessment is the process of verification of the information a taxpayer has provided in the returns submitted by a taxpayer to the income tax department. An assessment is carried out by the Income Tax department after the filing of an income tax return by an assessee.
Scrutiny assessment is a detailed assessment of an income tax return filed by a taxpayer. In a scrutiny assessment, a tax officer would perform various tests and processes to confirm the correctness and genuineness of various claims, deductions, and so on, made by the taxpayer in the income tax return.
The most general reasons for selection of case for scrutiny are: Non filing of Income Tax Return; Error with respect to TDS; Non-disclosure of other incomes; High value transaction; Defect in income tax return.
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