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An assessee is a person who is liable to pay any tax or any sum of the amount payable or has any obligation to pay tax as per Section 2(7) of the Income Tax Act,1961.
Also, an assessee can be termed as each and every person for whom
This guide will help you understand the concept of an assessee under the Income Tax Act in detail.
The income of Mr. Rohan is Rs. 2,50,000 for the assessment year 2018-19. He does not file his return of income for the year as he is coming under the exempted slab. Here the Income Tax Department can not take any action against him. So he is not an assessee as no tax or any other sum is due from him for the given Assessment Year.
In the same case if he files his return of income to claim a refund of tax deducted on interest paid to him. Then B is considered as an assessee.
As per the Income Tax Act, the assessee has been classified into different categories. For better understanding, we have given a description of the same-
Taxpayers must file their returns on time and pay taxes when due. However, they may sometimes miss the deadline for filing returns. In such cases, the Income Tax Department or the Assessing Officer may issue a notice asking for an explanation. Upon receiving the notice, the taxpayer must respond with a valid reason for the delay and promptly file the overdue return.
Here are the key responsibilities of a taxpayer after receiving a notice:
Any individual who is required to pay taxes is known as the income tax assessee. It is the assessee’s responsibility to file tax returns, pay taxes, and reply to income tax department letters. However, it can be complicated to file your tax returns yourself. If you are among those who find taxes complicated or need help e-filing your income tax return, our tax experts are here to maximize your savings and ensure accurate filing. Don't delay—Book your eCA today!
A representative assessee is considered deemed to be an assessee by virtue of section 160(2). These assessees are liable to pay taxes not for income earned by themselves but for other persons also. Example- Agents of NRI or Guardian of Minors etc.
An assessee will be in default if they don't pay the full amount demanded by the Income Tax Department under Section 156 within 30 days of receiving the notice.
Log in to your account on the Income Tax website. Navigate to the ‘My Account’ tab and select ‘Add/Register as Representative’ to add a representative.
In an AOP (Association of Persons), a "person" can be an individual, a company, or any association or body of individuals. However, in a BOI (Body of Individuals), only individuals can be members. Therefore, while an AOP may include legal entities, a BOI consists solely of individuals.
An individual is not considered an assessee if they are not required to pay taxes because their income does not fall under the taxable limit. Therefore, while every assessee is an individual, not every individual qualifies as an assessee.
Corporate assessees are businesses registered under the Companies Act of 1956 or 2013. All other assessees, except corporate assessees, are classified as non-corporate assessees. Non-corporate assessees include individuals and partnership firms.
After clubbing and setting off losses, the total income is calculated under each of the five heads of income. The tax payable by an assessee is based on this total income. Gross total income refers to the income calculated before applying deductions under Chapter VIA of the Income Tax Act, of 1961.
Parental guardianship or assessment is allowed, requiring parents to apply on behalf of their minor child. To do so, they must complete Form 49A. This form can also be used for an adult representative assessee. The parent's identity documents must be submitted along with the form.
Yes, NRIs are considered assessees if they have income arising in India, such as rental income, dividends, or capital gains, which are taxable under Indian income tax laws.
A minor can be considered an assessee if their income, such as investment earnings, exceeds the basic exemption limit. While this income is usually clubbed with a parent's income, the minor is still recognized as a separate assessee.
An assessee refers to any individual or entity subject to income tax laws. This includes taxpayers as well as those liable for penalties or undergoing assessments, even if no tax is due.
A person must pay taxes on their income as per the Income Tax Act. In this case, their tax liability makes them an assessee. However, not every individual qualifies for assessment. For example, someone with no income is not considered an assessee.
Section 160(2) defines a representative assessee as an individual who is liable to assessment on behalf of another person. These assessees are responsible for paying taxes on income earned not only from their own sources but also on behalf of others. Examples include guardians of minors or agents representing NRIs.
If an assessee fails to file their income tax return, they may incur penalties, interest on unpaid taxes, and potential prosecution. The tax department may also issue a notice requesting the return or initiate an assessment based on the available information.
