Summary Assessment and Regular Assessment under Income Tax

Neethi V. Kannanth | Last updated: 15 February 2022

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This article explains two key income tax assessment processes: Summary Assessment under Section 143(1) and Regular Assessment under Section 143(3). Summary Assessment involves processing your filed return with specific adjustments for errors, incorrect claims, or missed income, and it concludes with an intimation of tax payable or refund due. Regular Assessment, initiated by a notice under Section 143(2), is a more detailed review by an assessing officer to verify income, losses, and tax payments, culminating in a written order.

Summary Assessment under section 143(1) When a return of income has been filed by the assessee under section 139(1) or in response to a notice issued under section 142(1), the return shall be processed in the following manner- a. The total income or loss shall be computed after making the foll

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FAQ :

A Summary Assessment under Section 143(1) is a process where your filed income tax return is reviewed for arithmetical errors, incorrect claims apparent from the return, disallowance of losses or deductions claimed after the due date, or income mentioned in Form 26AS/16A/16 but not included in your return. Adjustments are made after informing you and considering your response.

A Regular Assessment under Section 143(3) is a more thorough review by an assessing officer. After you file a return or respond to a notice, you may be required to attend or provide evidence to ensure you haven't understated income, computed excessive loss, or underpaid tax. The officer then makes an order assessing your total income and determining tax payable or refund.

The time limit for issuing a notice under Section 143(2) for a Regular Assessment is six months from the end of the financial year in which the return of income was furnished by the assessee.

An intimation is sent to the assessee under Section 143(1) specifying the tax payable, interest, and fees, or the refund due. This intimation is also sent even if there is no tax payable or refund due, and it must be sent within one year from the end of the financial year in which the return was made.

If a Regular Assessment is made, any tax or interest already paid by the assessee under Section 143(1) is considered as having been paid towards that Regular Assessment.