Types of Assessment in Income Tax | Stay Compliant with Saptax Hub LLP Types of Assessment in Income Tax, ensuring that taxpayers fulfill their obligations correctly. The Income Tax Act, 1961 prescribes different types of assessments to verify, correct, and reassess tax filings. Whether you're an individual taxpayer or a business owner, understanding these assessments can help you stay compliant and avoid penalties. 1. Self-Assessment (Section 140A) Self-assessment is the first step in tax compliance, where taxpayers calculate their own tax liability, deduct advance tax paid, and pay any remaining dues before filing the return. It ensures that taxpayers take…