Litigation/
Assessments
A litigation risk assessment is intended to provide management with an early, concise evaluation of the risks and costs associated with a particular piece of litigation –whether a plaintiff case or a defense case.
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A determination of tax liability under this Act and includes self-assessment, re-assessment, provisional assessment, summary assessment, and best judgment assessment. Normally, persons having GST registration file GST returns and pay GST every month based on self-assessment of GST liability. However, the Government at all times has the right to re-assess or perform an assessment by itself and determine if there is a short payment of GST.
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Section 59 – Self-assessment of taxes payable
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Section 60 – Provisional assessment
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Section 61 – Scrutiny of tax returns filed by registered taxable persons
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Section 62 – Assessment of registered taxable person who has failed to file the tax returns
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Section 63 – Assessment of unregistered persons
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Section 64 – Summary assessment in certain special cases
Income tax assessment is the process of collecting and reviewing the information filed by assesses in their income tax returns. At the end of each financial year, all persons and entities required to file an income tax return by self-computing the amount of income earned and pay the tax due. Hence, an income tax assessment would happen subsequent to the filing of an income tax return. In this article, we look at the different types of income tax assessment and their implications. Every assesse, who earns income beyond the basic exemption limit in a Financial Year (FY), must file a statement containing details of his income, deductions, and other related information. This is called the Income Tax Return (ITR). Once you as a taxpayer file the income returns, the Income Tax Department will process it. There are occasions where, based on set parameters by the Central Board of Direct Taxes (CBDT), the return of an assesse gets picked for an assessment.
The VAT Law provides for self-assessment to facilitate easy compliance and payment of taxes. It also explains the notices, the demand and recovery provisions when the taxes are unpaid, short paid and/or returns are not filed. A VAT Assessment from HMRC is an estimate of how much VAT they think you owe for the missing quarter. ”In the VAT regime assessment is deemed to happens if no notice is received from department within such prescribed time limit. If there is any reason to believe the assessment has not paid tax correctly or has short paid or has suppressed the turnover to evade tax, the department initiates assessment. Generally a notice is issued to the assesse to give an opportunity of being heard. Various details are demanded by the authority. Some requirements are in writing while some time verbal details are asked. We seek a clarification as to how the process of assessment is as per law. Whether is information sought by the authority should be in writing or it can be verbal. Experts request you to through some light with provision of law.
The power to conduct a search in tax evaders abode, followed by a subsequent seizure of any illicit money is one of the most important powers of the Income Tax Department. Tax authorities are known to conduct such raids to minimise tax evasion.
One of the most important powers that the Income Tax Department possesses is the power of search and seizure. Tax authorities usually exercise their right to conduct raids on individuals or groups who are suspected of evading tax or who are deemed to be in possession of any property or income belonging to another party that has not been disclosed. While this might seem like a drastic step, it is an act that is upheld by the constitution, and is deemed entirely necessary in cases where the Income Tax Department feels extreme action is needed.
If the mismatch is due to your employer’s mistake, he/she has to file a revised TDS Return with correct details. In case of a tax credit mismatch notified by the IT department the errors should be corrected online through the IT e-filing portal. TDS(Tax Deducted at Source) should ideally be the same in Form 26AS and Form 16 or 16A. However, sometimes there might be inconsistencies owing to several reasons including clerical mistake. A common reason for a tax credit mismatch is TDS mismatch. Meaning, the tax credit you have claimed does not match with the TDS entries on your Form 26AS. You must have received a mail from the department explaining the same or you can login to the e-filing website and check for the information under ‘My Accounts’.
If an order is the subject-matter of any appeal or revision, any matter which is decided in such an appeal or revision cannot be rectified by the Assessing Officer. In other words, if an order is subject matter of any appeal, then the Assessing Officer can rectify only those matters which are not decided in such appeal. No order of rectification can be passed after the expiry of 4 years from the end of the financial year in which order sought to be rectified was passed. The period of 4 years is from the date of order sought to be rectified and not 4 years from original order. Hence, if an order is revised, set aside, etc., then the period of 4 years will be counted from the date of such fresh order and not from the date of original order.
