Regular Assessment

Once a taxpayer i.e., FPI files its annual income tax return, the Indian tax authorities initiate a summary assessment. This initial processing involves verifying the arithmetic accuracy of the return and rectifying any apparent errors or incorrect claims.

Following the summary assessment, if further verification is deemed necessary, the authorities may initiate a scrutiny assessment. These assessments are typically selected through the Computer Aided Scrutiny Selection (CASS) system, which uses risk-based parameters to identify cases requiring deeper examination.

In such scrutiny proceedings, a notice is issued under Section 143(2) of the Act, requiring the taxpayer to furnish supporting documentation/ information electronically. The scrutiny assessment is completed within the prescribed statutory timelines, concluded by issuance of written order by the concerned tax officer, assessing the income and claims made in the return. If the taxpayer disagrees with the assessment order, they may seek relief by filing an appeal with higher tax authorities, following the prescribed procedures laid out under the Act.