The number of bank accounts an individual should open depends on their financial goals, income sources, and spending habits. Here’s a practical approach: 1️⃣ Primary Savings Account (Must-Have) Used for salary credits, savings, and daily transactions. Choose a bank with good digital banking servicesRead more
The number of bank accounts an individual should open depends on their financial goals, income sources, and spending habits. Here’s a practical approach:
1️⃣ Primary Savings Account (Must-Have)
- Used for salary credits, savings, and daily transactions.
- Choose a bank with good digital banking services and low fees.
2️⃣ Secondary Savings Accounts (For Budgeting & Goals)
- Helps separate funds for specific purposes (e.g., travel, emergency fund, investments).
- Can be in a different bank to avoid overspending.
3️⃣ Investment accounts (For Wealth Growth)
- Linked to mutual funds, stock market, or fixed deposits.
- Recommended if you actively invest.
4️⃣ Business or Freelance Accounts (If Self-Employed)
- Keeps personal and business expenses separate.
- Required for tax filing and accounting.
5️⃣ Joint Account (If Needed)
- Useful for couples, aging parents, or dependents.
- Ensures easy fund access for shared expenses.
💡 Best Practice:
✅ 2-3 accounts are sufficient for most individuals.
✅ Avoid multiple accounts unless necessary (to prevent maintenance fees and complexity).
The Income Tax Act prescribes 5 main types of assessments, each with a different purpose and scope: 1️⃣ Self-Assessment – [Section 140A] This is done voluntarily by the taxpayer while filing the income tax return. If tax is payable as per return, it must be paid before filing. ✔ No notice from deparRead more
The Income Tax Act prescribes 5 main types of assessments, each with a different purpose and scope:
1️⃣ Self-Assessment – [Section 140A]
This is done voluntarily by the taxpayer while filing the income tax return.
If tax is payable as per return, it must be paid before filing.
✔ No notice from department required.
2️⃣ Summary Assessment – [Section 143(1)]
Also known as Intimation.
Done by CPC through computerised checks.
Adjustments for arithmetical errors, mismatch in TDS, etc., are made.
✔ No detailed scrutiny involved.
3️⃣ Scrutiny Assessment – [Section 143(3)]
Involves detailed examination of the return and accounts.
Done to verify correctness of income, claims, exemptions, deductions, etc.
✅ A notice under Section 143(2) is mandatory.
Commonly called Regular Assessment.
4️⃣ Best Judgment Assessment – [Section 144]
Used when:
No return is filed,
Return is defective and not rectified,
Compliance is not made with notices.
Officer assesses income based on available material.
5️⃣ Reassessment / Income Escaping Assessment – [Section 147/148]
Done when the Assessing Officer believes some income has escaped assessment.
Notice issued under Section 148.
Time limits and prior approvals apply as per amended provisions post Finance Act, 2021.
𝗧𝘆𝗽𝗲𝘀 𝗼𝗳 𝗔𝗽𝗽𝗲𝗮𝗹𝘀 (With Relevant Sections)
1️⃣ Appeal to CIT(Appeals) – [Section 246A]
First appellate authority.
Can appeal against order of Assessing Officer.
Must file appeal within 30 days of receiving order.
2️⃣ Appeal to Income Tax Appellate Tribunal (ITAT) – [Section 253]
Against orders of CIT(A) or certain orders of AO.
ITAT is the second level appellate authority.
3️⃣ Appeal to High Court – [Section 260A]
On substantial questions of law arising from ITAT orders.
Must be filed within 120 days from date of ITAT order.
4️⃣ Appeal to Supreme Court – [Section 261]
Against High Court judgment, only if case involves important legal principles.
Requires certificate of fitness from High Court.
5️⃣ Revision by CIT (u/s 263/264)
Not an appeal, but a review power:
Section 263 – Revision by CIT if order is erroneous and prejudicial to revenue.
Section 264 – Revision in favor of taxpayer.
🔄 Faceless Assessment and Appeals (Recent Development)
Introduced to bring transparency and efficiency.
Conducted electronically, without physical interface.
Applies to 143(3), 144 assessments and CIT(A) proceedings.
🧾 Summary Table:
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