What is Assessee ? (Meaning,Definition and type of Assessee)

What is Assessee?

Assessee is a term used under the Income Tax Act, 1961 in India. It refers to a person or entity who is liable to pay tax under the provisions of the Act. The Act categorizes assesses based on the types of income they earn, and the rates and procedures for determining and collecting taxes from them. Essentially, the term "Assessee" refers to any person or entity who is subject to taxation under the provisions of the Act.

Meaning of Assessee

The term "Assessee" means a person who is subject to assessment, i.e., the process of determining the amount of tax payable by a person or entity. It is a person or entity who is liable to pay tax under the Income Tax Act, 1961 in India.

Definition of Assessee

The Income Tax Act, 1961 in India provides a detailed definition of the term "Assessee". As per the Act, an Assessee is defined as:

"Any person who is liable to pay tax or any other sum of money under this Act, and includes-

(a) Every person in respect of whom any proceeding under this Act has been taken for the assessment of his income or the income of any other person in respect of which he is assessable, or of the loss sustained by him or by such other person, or of the amount of refund due to him or to such other person;

(b) Every person who is deemed to be an assessee under any provision of this Act;

(c) Every person who is deemed to be an assessee in default under any provision of this Act."

This definition covers a wide range of individuals and entities that are subject to taxation under the provisions of the Act.

Types of Assessee

The Income Tax Act, 1961 in India categorizes assesses into different types based on the nature of their income and their legal status. The following are the different types of Assessee as per the Act:

1) Individuals: An individual is a person who is assessed on his or her personal income, including income from salary, business or profession, capital gains, and other sources.

2) Hindu Undivided Families (HUF): HUF is a separate entity that is taxed on its income under the Act. An HUF consists of all persons lineally descended from a common ancestor, including their wives and unmarried daughters.

3) Companies: A company is a legal entity that is taxed on its income under the Act. There are different types of companies, including domestic companies, foreign companies, and one-person companies.

4) Partnerships: A partnership is an association of two or more persons who come together to carry on a business or profession. Partnerships are taxed on their income under the Act.

5) Association of Persons (AOP): An AOP is a group of two or more persons who come together to carry on any business or profession, and who are not necessarily partners. AOPs are taxed on their income under the Act.

6) Body of Individuals (BOI): A BOI is a group of individuals who come together to carry on any business or profession, but who are not necessarily partners. BOIs are taxed on their income under the Act.

7) Trusts: A trust is a legal arrangement where a person or entity (the trustee) holds property or assets for the benefit of one or more beneficiaries. Trusts are taxed on their income under the Act.

8) Artificial Juridical Persons (AJP): An AJP is an entity that is not a natural person but is treated as a person under the law. Examples of AJPs include local authorities, universities, statutory corporations, and other similar entities. AJPs are taxed on their income under the Act.

In conclusion, the term "Assessee" refers to a person or entity who is liable to pay tax under the provisions of the Income Tax Act, 1961 in India. The Act categorizes assesses based on the types of income they earn and their legal status. Understanding the types of assesses can help taxpayers determine the applicable tax rates, procedures for tax filing and payment, and other provisions of the Act that are relevant to their specific circumstances.