Inquiry before assessment

As the name implies, it is a review of the information we provided before the Assessing Officer makes a final determination. The assessee would find themselves in severe positions if they fail to reply to this form of notice. Prior to or following the assessment of the assessee's tax return, this notification may be delivered.

In order to make an evaluation under this Act, any individual who has filed a return under section 139 or who has received a notice under a section 139 subsection (whether or not a return has been filed) may be served with a notice by the revenue officer requiring him to generate, or cause to be generated, such accounts or documents as the revenue officer may require, on the date specified in the notice or to provide information in the form and on the topics the income-tax officer may demand, including a description of all the assessee's assets and liabilities, whether or not they are included in the accounts. Information must be provided in writing and confirmed in the way required.

Real benefits of 80g deduction and other tax friendly sections are there but due to lack of time or understanding, the only loser is the taxpayer for leaving money on the table.

More stuff for 12a is available here.

Before ordering the assessee to provide a statement of all liabilities and assets not shown in the accounts, the Examining Assistant Commissioner's prior consent must be obtained. Any accounting for a period that occurred more than three years ago to the prior year may not be requested by the income-tax officer. The Income-tax Officer may do whatever research he deems necessary in order to collect complete information on the income or loss of any person.

A chance for the assessee to be heard on any information collected as a result of an inquiry made according to a subparagraph and intended to be used for the assessment must be provided, unless the assessment is made pursuant to section 144. In the event that the assessee has not yet submitted the return of income within the allotted period, the assessing officer may issue a section 142(1) tax notice requesting that the assessee provide his ITR in relation to the income for which he is allowable.

You will wonder if you know about tax exemption under 80g.

After the assessee has submitted the return, he must then present the necessary papers for review. The taxpayer is given a fair chance to respond to any information that may have been acquired as a result of this inquiry. In the event that the return was not filed, the income tax return must be filed within the window of time specified in the notification, and a proof of filing must be included with the necessary paperwork.

There is good news on 80g of income tax act for tax deductions.