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- Assessee (Section 2(7)): An assessee is a person by whom any tax or any other sum of money is payable under the Income Tax Act.
- Assessment Year (Section 2(9)): Assessment year means the period of 12 months starting from 1st April of every year and ending on 31st March of the next year.
- Previous year (Section 3): Income earned in a year is taxable in the next year. The year in which income is earned is known as the previous year and the next year in which income is taxable is known as the assessment year.
- Receipt Vs. accrual of income: Income is said to have been received by a person when payment has been actually received whereas income is said to have accrued to a person if there arises in the person a fixed and unconditional right to receive such income.
- Belated Return: Section 139(4) provides that a return which has not been furnished by the due date may still be furnished as a belated return before the expiry of one year from the end of the assessment year or before the completion of assessment, whichever is earlier. However, on any return of income that has not been filed by the end of the relevant assessment year, penalty of Rs.5000/- u/s 271F shall be levied.
- Revised Return: If a person having filed his return within the due date, discovers any omission or wrong statement therein, he may file a revised return before the expiry of one year from the end of the assessment year or completion of assessment whichever is earlier.
- Processing u/s 143(1): The Finance Act 2008 has reintroduced provisions in respect of correcting arithmetical mistakes or internal inconsistencies at the stage of processing of returns. It has, thus been provided that, during the stage of processing, the total income shall be computed after making adjustments in respect of any arithmetical error in the return or any incorrect claim apparent from information in the return and if on such computation, any tax or interest or refund is found due on adjustment of TDS or advance tax or self assessment tax, then an intimation specifying the amount payable shall be prepared/generated or issued to the assessee. If any refund is found due, it is to be sent along with an intimation to such effect. If no demand or no refund arises, the acknowledgement of the return is deemed to be an intimation. Such intimation is to be sent within one year from the end of the financial year in which the return is filed.
- Assessment u/s 143(3): If the Assessing Officer, on the basis of the return filed by the assessee, considers that it is necessary to ensure that the assessee has not understated his income, he shall serve on the assessee a notice u/s 143(2) and, after obtaining such information as he may require, complete the assessment ( commonly referred as scrutiny assessment) u/s 143(3).
- Rectification of mistake u/s 154: If any order passed by an income tax authority suffers from a mistake apparent from record, the assessee may make an application for rectifying the same before the expiry of four years from the end of the financial year in which the above order was passed. The Finance Act 2001 has provided that where an application for rectification under this Section is made by the assessee on or after 1.6.2001, the same shall have to be acted upon by the income tax authority within a period of six months from the end of the month in which the application is received.
- Interest on refunds u/s 244A: If the refund due to the assessee is more than 10% of the tax payable by him, he shall be entitled to receive simple interest thereon at rate of 0.5% per month (substituted in place of 0.67% per month w.e.f. 8.9.2003) or part thereof, from 1st April of the assessment year to the date on which the refund is granted.
- Tax Return Preparers Scheme: For enabling specified classes of tax payers in preparing and furnishing income tax returns, the Board has notified the ‘Tax Return Preparer Scheme’ under which specially trained and authorized Tax Return Preparers will provide assistance to tax payers in this regard. Details of the Scheme may be viewed at www.incometaxindia.gov.in.
