Notice of assessment

A Notice of Assessment is an official letter sent by the tax department after reviewing a taxpayer’s filed return. It confirms how much income has been assessed and the exact amount of tax the taxpayer needs to pay. The notice usually includes your personal details, the assessment year, the income reported in your return, any changes made by the tax authority, the final tax payable, and instructions for payment or filing an objection. It is a legally important document because it establishes your official tax liability and starts the timeline for either paying the tax or raising an appeal.

Example:

If you file your return showing an income of ₹10,00,000 but the tax department determines your taxable income to be ₹11,00,000, they will issue a Notice of Assessment. The notice will state the revised taxable income of ₹11,00,000, the tax payable (say ₹2,50,000), and the due date for payment, along with any interest or penalties if applicable.