An Income Tax Assessment is the procedure of verifying the information that a taxpayer has provided in the returns submitted by a taxpayer to the Income Tax Department. The motive of conducting the assessment is for the IT Department to verify the return filed by the Taxpayer for the correctness with respect to the amount if taxable income declared and tax paid.
What is an e-assessment scheme or faceless scrutiny?
- Under the faceless e-assessment scheme, the Faceless Scrutiny is the Scrutiny assessment that is carried out via an electronic mode with no human interface.
- Thus, there will be no face-to-face interaction between the taxpayer and the Income Tax Department when a taxpayer’s ITR is picked for a detailed scrutiny.
What is Scrutiny Assessment Under section 143(3)?
- Scrutiny assessment u/s 143(3) is a kind of a detailed assessment of an income tax return filed by a taxpayer.
- When the Income tax officer performs 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 is said to be the Scrutiny Assessment.
- The main purpose of an Income Tax Officer behind a scrutiny assessment is to ensure that the taxpayer has not understated the income or has not computed excessive loss or has not underpaid the tax in any manner.
Requirement for drafting and filing reply for the notice received under Scrutiny Assessment:
- Upon receiving the notice u/s 143(3), the assessee shall file a reply for the Scrutiny Assessment.
- The assessee shall have to furnish the original notice received along with the documents.
- The Documents shall depend upon the nature of the notice received for the Scrutiny Assessment.
Why it is important to respond to the Scrutiny Assessment u/s 143(3)?
- The assessee cannot take the notice of Scrutiny Assessment lightly and ignore it.
- If assessee fails to respond to the department within the stipulated time period, he/she may be subject to a penalty of Rs.10,000 under Section 272A for each failure to respond.
- The Income Tax Assessment Officer may close the assessment with the information he has with the best judgement under Section 144.
- If you choose to dispute the higher tax demand, a minimum of 20% of the tax due must be paid before you file an appeal with higher authorities.
- Non filing of reply may lead to prosecution.
- If after hearing, the assessee is found guilty, it may result in imprisonment.
Why Tax Intelligence as your Service Provider for “Reply to notice under Scrutiny Assessment u/s 143(3)?
Tax Intelligence is an eminent business platform and a progressive concept, which helps end-to-end incorporation, compliance, advisory, and management consultancy services to clients in India and abroad. Filing online replies to the Income Tax notices is easy, seamless, cheapest and quickest with Tax Intelligence! Apart from this, Tax Intelligence also helps you to file GST Returns, TDS Returns, PF Returns and ESI Returns easily.
What Does Tax Intelligence Do for Filing Online Reply Notice u/s 143(3)?
- We review your income tax notice and analyze the specific sections, issues, or queries raised by the Assessing Officer.
- Our experts evaluate your filed Income Tax Return, financials, and documents to prepare a detailed, factual response.
- We draft a professional and well-structured online reply addressing every question or discrepancy raised under Section 143(3).
- We help you compile and upload supporting evidence, such as bank statements, invoices, and computation reports, on the e-Proceedings portal.
- Our tax professionals represent you virtually before the Income Tax Department, if additional clarification is requested.
- We ensure your reply is filed within the due date mentioned in the notice to avoid further proceedings or penalties.
- We provide updates at every stage; from submission to acknowledgment, so you can track the status of your case easily.
- We maintain complete confidentiality and prepare follow-up responses if the Assessing Officer requests additional details