Tax Return Evaluation
Evaluation means appraisal, estimation, measurement, judgment etc. In the context income tax law, it means evaluation, estimation, or measurement of income. The term ‘evaluation’ in field of taxation law has a definite meaning. This term is comprehensive and may include varied ranges of activities and procedures. The definition of evaluation has not been provided with the IT Act, but a perusal of the term within the scope of the Act makes it obvious that it implies an investigation and ascertainment of the correctness of the returns filed by the Tax Payer. Essentially the evaluation would evidently mean determination of the quantum of taxable turnover and also the quantum of taxable amount payable by the tax payer.
The Evaluation is made on the basis of returns and accounts furnished by Tax Payer in support with Tax Preparer.
There of but on an estimate made by the tax agency authority which may, of course, be based inter alia on the accounts and documents furnished by the Tax Payer. Basically evaluation is estimation for an amount evaluated while paying Income Tax. It is a compulsory contribution that is required for the support of a government.
In a best evaluation the Tax preparer should really base the assessment on his best judgement i.e. he must not act dishonestly or vindictively.