Income Tax-IMPORTANT DEFINATION
Assessee – Section 2(7) of income Tax Act, 1961:
An assessee is any individual who is liable to pay taxes to the government against any kind of income earned or any losses incurred by him for a particular assessment year. Each and every person who has been taxes in the previous year for income earned by him is treated as an Assessee under the income tax Act, 1961
Introduce Topics
a. Normal Assessee
b. Representative Assessee
c. Deemed Assessee
d. Assessee-in-default
a. Normal Assessee:
I. any person against whom proceeding under Income Tax act are going on irrespective of the fact whether any tax or other amount is payable by him or not;
II. any person who has sustained loss any filed return of loss u/s 139 (3);
III. any person by whom some amount of interests, tax or penalty is payable under this Act:
IV. Any person who is entitled to refund of tax under this Act.
b. Representative Assessee:
A person may not be liable only for his own income or loss but he may also be liable for the income or loss of other persons e.g. agent of non-resident, guardian of minor or lunatic etc. In such cases, the person responsible for the assessment of income of such person is called representative assesses. such person is deemed to be an assessee.
c. Deemed Assessee:
I. In case of a deceased person who dies after writing his will the executors of the property of deceased are deemed as assessee.
II. In case a person dies without writing his will his eldest son or other legal heirs are deemed as assessee.
III. In case of minor lunatic or idiot having income taxable under income act, their guardian is deemed as assessee.
IV. In case of a non-resident having income in India, any person acting on his behalf is deemed as asseessee.
d. Assessee-in-default:
A person is deemed to be an assessee-in-default if he to fulfill his statutory obligations expect in circumstances where he has obtained order staying the demand in due course. An assessee in default will continue to be so, unless he has cleared the demand/obligations in full.
Further, In case of an employer paying salary or a person who is paying interest, it is their duty to deduct tax at source and deposit the amount of tax so collected in government treasury. if he fails to deduct tax at source or deducts tax but does not deposit it in the treasury, he is known as assessee-in-default.
PERSON-SECTION 2(31) of Income Tax Act,1961:
Person includes:
1. An Individual;
2. A Hindu Undivided Family (HUF)
3. A company;
4. A firm;
5. An association of persons or a body of individuals, whether incorporated
or not;
6. A local authority; and
7. Every artificial juridical person
Assessment Year- Section 2(9) of Income Tax Act, 1961
The Term “assessment year” means the period of twelve months commencing on the 1st day of April every year. The Assessment year is the financial year, which income of a person relating to the relevant previous year is assessed to tax. Every person who is liable to pay tax under this Act files officers. This processing is called assessment. Under this income returned by the assesses is checked and verified.
Previous Year – Section 3 of Income Tax Act, 1961:
The term “previous year” means the financial year immediately proceeding the assessment year. It’s basically a period of 12 month just preceding the assessment year.
In case of a business or profession newly set up- The previous year shall be the period beginning with the date of setting up of the business or profession or the date on which the source of income newly comes into existence and ending with the said financial year.
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