TAX ASSESSMENTS
Ever wondered what happens after you file your Income Tax Return?
That’s where Tax Assessment steps in!
Tax Assessment is the process by which the Income Tax Department evaluates the correctness of income declared and the tax paid by a taxpayer. In simple terms, it’s a verification process — the government checks whether you have correctly reported your income, claimed deductions genuinely, and paid the right amount of tax. Tax assessment ensures fairness and transparency in the tax system by detecting errors, omissions, or frauds, and by confirming that every taxpayer contributes their due share to the nation’s revenue.
STEPS IN TAX ASSESSMENT:
- Proposed company name(s) — one (main) and up to two alternate names
- Promoter/Director identity proof (PAN, Aadhaar, Passport)
- Promoter/Director address proof (Utility bill, bank statement, etc.)
- Digital Signature Certificate of the applicant
- Optional: Justification or rationale for the proposed name (to avoid rejection)
WHY TAX ASSESSMENT IS DONE?
- To ensure accuracy
- To determine actual tax liability
- To prevent tax evasion
- To promote compliance
- To maintain revenue stability
FAQs
To ensure that taxpayers have correctly declared their income and paid the right amount of tax.
Taxation is the system of collecting taxes, while Tax Assessment is the process of checking and finalizing how much tax you actually owe.
ITR copy, Form 16, bank statements, investment proofs, rent receipts, and any other documents supporting deductions or income claims.
Assessments are conducted by the Assessing Officer (AO) appointed under the Income Tax Department.
E-assessment is an online, paperless system introduced to make tax assessments faster, transparent, and less personal (faceless assessment).