Direct and Indirect Taxation · Self-Assessment and Intimation

Types of Assessment and Scrutiny under the Income-tax Act, 2025

Updated 10 October 2026 · Fact-checked

Assessment is how your total income and tax are finally determined. Under the Income-tax Act, 2025 you first self-assess and file a return. The department then processes it and sends an intimation (summary assessment, no scrutiny). If the return is selected, the Assessing Officer issues a notice and makes a detailed scrutiny assessment.

Understand Scrutiny and Other Assessment Under Section 270

Assessment means determining the correct total income of an assessee and the tax or refund due on it. Think of it as a ladder with four rungs. Each rung checks the return more deeply than the one before.

Rung 1 is self-assessment. You compute your own income, pay any tax still due, and file the return. The tax authorities do not check anything at this stage. Rung 2 is summary assessment, also called processing of the return. The return is checked by computer for arithmetical errors, incorrect claims apparent from the return, and the like. You receive an intimation showing tax payable or refund due. No officer examines your books and you are not called to explain.

Rung 3 is scrutiny assessment. Some returns are selected for a detailed check. The Assessing Officer issues a notice, may ask for documents and evidence, hears you, and then passes a written assessment order. This is a real assessment where the officer can disagree with your claims. Rung 4 covers other assessments, such as best judgment assessment when an assessee does not file a return or does not comply with notices, and reassessment of income that has escaped assessment. These come into play only when the conditions in the Act are met.

The key link is this. An intimation is not a scrutiny order. Receiving one does not stop the Assessing Officer from selecting the return for scrutiny later, within the conditions and time limits in the Act. Check the exact sub-sections and time limits in the bare Act or ICMAI study material, because exam questions on this topic are framed on them.

Key rules to remember

Self-assessment: Tax payable on own computation – tax already paid (advance tax, TDS, TCS) = tax to be paid before filing; The assessee does this. No officer is involved.
Summary assessment (intimation): Return → processing and adjustments → intimation of tax payable or refund; Done without scrutiny. The assessee is not heard on the processing itself.
Scrutiny assessment: Selection → notice → inquiry and hearing → assessment order; The Assessing Officer examines claims in detail and can make additions to income.
Best judgment assessment: Non-filing or non-compliance → assessment on the officer's best judgment; A fallback for default. It is not a normal route.
Summary vs scrutiny test: Is there a notice and an inquiry? Yes = scrutiny. No = summary.; Use this to classify any fact pattern quickly.

How to solve Scrutiny and Other Assessment Under Section 270 questions

Use this method for theory questions on types of assessment and for short case-based questions.

1Identify what the question asks: define a type, compare two types, or advise on a given fact pattern.
2Find the stage in the facts. Has the return only been filed, only processed, or has a notice been issued?
3Name the type of assessment: self, summary (intimation), scrutiny, best judgment or reassessment.
4State the rule in plain words: who acts, whether a notice is issued, whether the assessee is heard, and what the outcome is.
5Apply it to the facts. Say whether the officer can proceed further and why.
6Quote a section number only if you are sure of it. Otherwise name the provision as the assessment provisions of the Income-tax Act, 2025.
7End with a one-line conclusion that answers the question asked.

Quickest way: Notice test for classifying assessments

When to use it: Use it for MCQs and short fact-based questions where you must name the type of assessment.

Look for a notice from the Assessing Officer. If there is none and a computer processed the return, it is summary assessment.
If there is a notice, a hearing and an order, it is scrutiny assessment.
If the assessee never filed a return or ignored notices, think best judgment assessment.
If income is said to have escaped assessment, think reassessment.
If the assessee computed and paid the tax on their own, it is self-assessment.

Common mistakes in Scrutiny and Other Assessment Under Section 270

Treating the intimation as a completed scrutiny assessment.
Both documents show tax payable or refund, so they look alike.
Fix: Remember that an intimation comes from processing without inquiry. Scrutiny needs a notice, a hearing and a reasoned order.
Saying that once an intimation is received, scrutiny can never follow.
Students assume the department has already accepted the return.
Fix: Write that the Assessing Officer can still select the return for scrutiny, subject to the conditions and time limits in the Act.
Confusing self-assessment with summary assessment.
Both words contain 'assessment' and both happen near filing.
Fix: Self-assessment is done by you. Summary assessment is done by the department on the filed return.
Using 'assessment year' in the answer.
Habit from the Income-tax Act, 1961.
Fix: Use 'tax year' and the terms of the Income-tax Act, 2025 throughout.
Quoting section numbers or time limits from memory.
Students mix the 1961 and 2025 numbering.
Fix: Quote only what you are sure of. A correct description of the rule earns marks even without the number.
Calling best judgment assessment a routine alternative to scrutiny.
Both end in an assessment order by the officer.
Fix: Say it applies only on default, such as not filing a return or not complying with notices.

Worked examples

Example 1

Distinguish between summary assessment and scrutiny assessment under the Income-tax Act, 2025. (5 marks)

Show the solution

Nature: summary assessment is a processing of the return, mostly by computer. Scrutiny assessment is a detailed examination by the Assessing Officer.
Notice: summary assessment needs no notice to the assessee. Scrutiny assessment starts with a notice requiring the assessee to appear or produce evidence.
Scope: summary assessment checks arithmetical errors and claims that are incorrect on the face of the return. Scrutiny can examine any claim, supported by books and documents.
Hearing: there is no inquiry in summary assessment. In scrutiny the assessee is given an opportunity to be heard.
Outcome: summary assessment ends with an intimation of tax payable or refund. Scrutiny ends with a written assessment order.
Further action: an intimation does not bar the officer from selecting the return for scrutiny later, within the Act's conditions.

Answer: Summary assessment is a quick, notice-less processing ending in an intimation. Scrutiny assessment is a detailed inquiry by the Assessing Officer, started by notice and ending in an assessment order.

Example 2

Mr. Rohan Mehta of Pune filed his return for the tax year 2026-27 after paying self-assessment tax. He received an intimation showing a refund of ₹18,000. Three months later he received a notice from the Assessing Officer asking him to produce documents supporting his deductions. He says the intimation was a final assessment, so the notice is invalid. Advise him.

Show the solution

Identify the stage. Rohan self-assessed, and the return was then processed, which gave the intimation.
Classify the intimation. It is a summary assessment resulting from processing, with no inquiry or hearing.
Classify the notice. A notice asking for documents to support claims is the start of scrutiny assessment.
Apply the rule. An intimation is not a scrutiny order, so it does not stop the Assessing Officer from proceeding, subject to the conditions and time limits in the Act.
Advise action. Rohan should check that the notice was issued within the time allowed, then respond with documents on or before the date given.
Note the effect. The scrutiny order, when passed, will replace the position in the intimation, and the refund may be adjusted if additions are made.

Answer: Rohan's contention is not correct. The intimation was only a summary assessment. The notice starts scrutiny assessment, which is valid if issued within the time and conditions in the Act. He should check the time limit and file a proper reply with documents.

Exam tips

Write the comparison of summary and scrutiny assessment as a point-wise list of 4 to 6 headings. It is the most predictable format.
In MCQs, look for the word 'notice' or 'inquiry'. It usually decides between summary and scrutiny.
Use 'tax year' and not 'assessment year' in every written answer.
In fact-based questions, name the stage first and the type of assessment second, then apply the rule. This pattern earns step marks.
Do not cite sub-sections or time limits unless you are sure. Describe the rule in words and move on.

Practice questions from Self-Assessment and Intimation

Scrutiny and Other Assessment Under Section 270 in other exams

The same ground in other exams, if you are preparing for more than one or want another angle on it.

Scrutiny and Other Assessment Under Section 270: frequently asked questions

What are the types of assessment under the Income-tax Act, 2025?

For exam purposes, think of self-assessment, summary assessment on processing of the return, scrutiny assessment, best judgment assessment and reassessment of escaped income. Each applies at a different stage and depth of checking.

What is the difference between summary assessment and scrutiny assessment?

Summary assessment is processing of the return without a notice or inquiry, and it ends in an intimation. Scrutiny assessment begins with a notice, involves examining documents and hearing the assessee, and ends in an assessment order.

Can a return be selected for scrutiny after I get an intimation?

Yes. The intimation is not a scrutiny order. The Assessing Officer can still select the return for scrutiny within the conditions and time limits in the Act.

When does best judgment assessment apply?

It applies when the assessee defaults, for example by not filing a return or by not complying with notices. The Assessing Officer then assesses income on the basis of the material available and their best judgment.