SHORT ANSWER:
Income tax reassessment is the process where the Income Tax Department reviews and re-evaluates a taxpayer's income tax return.
DETAILS:
- It can occur if the department believes that income has been underreported or deductions have been claimed incorrectly.
- The reassessment can be initiated within a specific time frame, usually within 3 years from the end of the assessment year.
PUNISHMENT / IMPLICATIONS (if applicable):
- If discrepancies are found, the taxpayer may have to pay additional tax, interest, and penalties.
SOURCE:
- Income Tax Act, 1961
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