FAQ - Tax Assessment & Scrutiny | NewTaxAge

1. What is Tax Assessment?

Tax assessment is the process by which the Income Tax Department reviews your filed tax returns to verify their accuracy. Based on the review, they either accept your returns or initiate further action if discrepancies are found.

2. What is Tax Scrutiny?

Tax scrutiny is a more detailed examination of your tax return. It’s typically triggered if the Income Tax Department finds inconsistencies or suspects underreporting of income. Scrutiny may also occur randomly as part of routine checks.

3. How do I know if my return is selected for scrutiny?

You will receive a notice from the Income Tax Department if your return is selected for scrutiny. This notice will outline the specific details or documents they need to verify.

4. What should I do if my return is selected for scrutiny?

If selected for scrutiny, gather all requested documents (like bank statements, income proof, receipts) and respond to the notice promptly. It's essential to provide accurate and complete information to avoid penalties.

5. What happens during a tax scrutiny?

During scrutiny, the tax authorities will review your financial records in detail. You may be asked for additional documents, clarifications, or evidence to support the income and deductions claimed in your return.

6. Can I appeal if my return is not accepted after scrutiny?

Yes, you can appeal if you disagree with the outcome of the scrutiny. An appeal can be filed with the relevant appellate authority, and our team at NewTaxAge can guide you through the process.

7. How long does the scrutiny process take?

The duration of the scrutiny process depends on the complexity of your case. It can take anywhere from a few months to over a year, depending on the specifics of the review.

8. Can I avoid tax scrutiny?

While scrutiny is a random process, maintaining accurate and transparent records, filing correct returns, and ensuring no discrepancies in your financial reports can reduce the chances of being selected for scrutiny.

9. What are the consequences of not responding to a tax scrutiny notice?

Failure to respond to a scrutiny notice can result in penalties, interest charges, or legal action. It's crucial to respond promptly and accurately to avoid these issues.

10. How can NewTaxAge assist with Tax Assessment and Scrutiny?

NewTaxAge provides expert assistance throughout the tax assessment and scrutiny process. We help ensure that your returns are accurate, prepare the necessary documents, and represent you effectively in front of the Income Tax Department.