Assessment in income tax refers to the process by which the government evaluates and verifies the accuracy of the income and financial details provided by a taxpayer in their Income Tax Return (ITR). Every entity which earns income beyond a certain threshold in a Financial Year (FY) is required to file an ITR, which is a statement containing information about their income, deductions, and other relevant financial information. The purpose of an assessment is to confirm that the taxpayer has accurately reported their income and has paid the correct amount of taxes owed. If discrepancies or irregularities are found, the tax authorities may request additional information, conduct further inquiries, or make adjustments to the taxpayer’s tax liability. In some cases, penalties or fines may be imposed if there is evidence of tax evasion or deliberate misreporting.