Scrutiny assessment is a detailed examination of a taxpayer’s income tax return by the Income Tax Department to verify its correctness. If you receive a scrutiny notice under Section 143(2) of the Income Tax Act, 1961, it is essential to respond accurately to avoid penalties and legal complications.
At VPS and Associates, we provide expert assistance in handling scrutiny assessments, preparing necessary documents, and representing clients before tax authorities to ensure compliance.
Income Tax Scrutiny Guidelines: https://www.incometaxindia.gov.in/
What is a Scrutiny Assessment?
A scrutiny assessment is conducted by the Income Tax Department to verify:
✔ Accuracy of income reported in the return.
✔ Legitimacy of deductions and exemptions claimed.
✔ Completeness of financial transactions, investments, and expenses.
If discrepancies are found, the taxpayer may need to provide explanations and additional documents to justify their claims.
Check Your Income Tax Notices: https://www.incometax.gov.in/iec/foportal
Types of Scrutiny Assessments
1. Limited Scrutiny
✔ Conducted based on specific risk parameters.
✔ Focuses only on selected aspects of the tax return.
✔ Taxpayers must provide clarifications on specific queries.
2. Complete Scrutiny
✔ A detailed review of the entire tax return.
✔ Requires submission of complete books of accounts.
✔ Verification of all transactions, deductions, and exemptions.
3. Best Judgment Assessment (Section 144)
✔ Conducted if the taxpayer fails to comply with notices.
✔ The assessing officer makes an estimated assessment based on available information.
✔ Can lead to higher tax liability and penalties.
Know More About Section 144: https://www.incometaxindia.gov.in/
Our Scrutiny Assessment Services
1. Notice Review & Response Filing
✔ Assistance in analyzing scrutiny notices under Section 143(2).
✔ Preparing and filing timely responses with supporting documents.
✔ Drafting reply letters to avoid unnecessary tax adjustments.
2. Documentation & Compliance Support
✔ Collection and preparation of required financial documents.
✔ Verification of bank statements, income proofs, and business records.
✔ Ensuring compliance with Income Tax Rules & CBDT Guidelines.
Income Tax Documentation Guidelines: https://www.incometaxindia.gov.in/
3. Representation Before Tax Authorities
✔ Expert representation in income tax hearings & appeals.
✔ Assistance in negotiations to avoid unnecessary tax additions.
✔ Liaison with assessing officers to resolve disputes smoothly.
4. Appeal Filing & Litigation Support
✔ Filing of appeals before CIT(A), ITAT, and High Court in case of unfavorable assessments.
✔ Representation in tax litigation cases.
✔ Assistance in obtaining relief from excess tax demands.
File Your Appeal Online: https://www.incometaxindiaefiling.gov.in/
Key Deadlines for Scrutiny Assessment
| Assessment Type | Time Limit for Completion |
|---|---|
| Limited Scrutiny | 12 months from notice issuance |
| Complete Scrutiny | 24 months from end of assessment year |
| Best Judgment Assessment | 24 months from end of assessment year |
Timely response ensures smooth case resolution!
Why Choose VPS and Associates?
Experienced tax professionals with expertise in scrutiny assessments.
Accurate response filing to minimize tax adjustments.
Strong representation before income tax authorities.
Hassle-free compliance to avoid penalties and notices.
Contact Us
Office Address:
VPS and Associates
8-3-988/11/1/A, 1st Floor, SBH EXTN 925,
SBH Colony Road, Hyderabad – 500045
📧 Email id : team@vpsandassociates.com
Contact us today!
☎️ Landline: 040 – 29801299
📲 Mobile no: 8886359392 / 9030931302
Handle Scrutiny Assessments with Confidence!
