September 2025

Section 143(1) of the Income Tax Act, 1961 governs the automated processing of income tax returns by the Centralized Processing Center (CPC). This is a preliminary, non-scrutiny assessment conducted without human intervention. Key Features of Section 143(1) Processing Automated Verification The system cross-checks the return with: Form 26AS (TDS/TCS data) AIS (Annual Information Statement) Tax payment records […]

A scrutiny (regular) assessment under Section 143(3) is a comprehensive evaluation of a taxpayer’s return by the Assessing Officer (AO). The goal is to ensure that income has not been understated, excessive loss has not been claimed, and tax has not been underpaid. This process is significantly more detailed than the preliminary review done under Section 143(1).

Section 143(3) deals with the scrutiny assessment process in Indian income tax law. This assessment is undertaken by the Assessing Officer (AO) after a detailed examination of the evidence and information submitted by the taxpayer, along with any additional evidence gathered by the AO. Key Steps in Assessment After Evidence Initiation: Notice Under Section 143(2) If the

Section 144 of the Income Tax Act, 1961, empowers the Assessing Officer (AO) to determine a taxpayer’s income and tax liability based on their “best judgment” when the taxpayer fails to comply with statutory requirements. This provision ensures tax collection even in cases of non-cooperation or incomplete information. 1. When is Section 144 Invoked? A Best Judgment Assessment is triggered in the following scenarios: Non-Filing of

Section 144A of the Income Tax Act, 1961, empowers the Joint Commissioner (JCIT) to intervene in pending assessments by issuing binding directions to the Assessing Officer (AO). This provision ensures uniformity, fairness, and efficiency in complex or high-stakes cases. Below is a detailed breakdown of its scope, procedure, and implications: 1. Key Provisions of Section 144A (A) Authority to Issue Directions The Joint Commissioner may

Section 144B introduces a technology-driven, faceless assessment scheme to eliminate human interface, enhance transparency, and streamline tax administration. Below is a detailed breakdown of its provisions, structure, and procedural framework: 1. Key Objectives of Faceless Assessment Transparency: Eliminate direct interaction between taxpayers and tax officers to reduce bias and corruption. Efficiency: Expedite assessments through automated case allocation and team-based

Section 147 empowers the Assessing Officer (AO) to reassess or recompute income that has escaped taxation in previous years. This provision ensures that all taxable income is accurately reported and taxed, even if initially overlooked. Below is a detailed breakdown of its provisions, procedures, and implications. 1. Key Features of Section 147 (A) Definition of “Income Escaping Assessment” Income is deemed to have

Section 151A empowers the Central Government to implement a faceless, technology-driven scheme for reassessing income that has escaped taxation under Section 147. Introduced by the Finance Act, 2021, and operationalized through the e-Assessment of Income Escaping Assessment Scheme, 2022 (effective from 29 March 2022), this provision aims to eliminate human interface, enhance transparency, and standardize procedures for reopening cases. Below is a detailed analysis of its

Section 153 prescribes strict deadlines for completing assessments, reassessments, and recomputations under the Income Tax Act. Below is a structured breakdown of the time limits, exceptions, and key judicial interpretations. 1. Time Limits for Different Assessments (A) Regular Assessments (Section 143/144) Assessment Year (AY) 2018–19: 18 monthsfrom the end of the AY (i.e., by 30 September 2020). AY 2019–20 Onwards:

Section 154 of the Income Tax Act, 1961, allows the Assessing Officer (AO), Commissioner (Appeals), or other tax authorities to correct apparent mistakes in their orders, including: Arithmetical errors(e.g., incorrect tax calculations). Factual oversights(e.g., missed deductions). Legal mistakes(e.g., misapplication of tax provisions). 1. Key Features of Section 154 (A) Who Can File a Rectification? Taxpayer: Can apply for corrections within 4 yearsfrom