Self-Assessment System of Taxation as a Challenge for India
Economic resources of government can be effectively utilized by the government through an effective implementation of tax administration system which largely depends upon tax assessment system having two types one is Official Assessment System (OAS) and another is Self-Assessment System (SAS). In OAS taxpayers are only required to file their annual tax returns when tax official’s issues the notices of assessment to tax payers whereas under Self-Assessment System (SAS) tax payers are required to assess their tax liability and to file the tax return properly. Most of the countries namely Sri Lanka, Pakistan, Indonesia, Australia, New Zealand and the United Kingdom have implemented the SAS and are availing the forthcoming opportunities in this regard. So it is suggested that India should review the practicality of this system and the present system should be revised keeping in view the Self-Assessment System.