Assessee – Section 2(7)
“Assessee” means a person who pay the tax or any other amount is payable
under this Act.
In addition to it includes the followings
- Every person in respect of whom any proceeding under this Act has been
- Taken for the assessment of his income
- The income of any other person in respect of which he is assessable
- The loss sustained by him or by such other person
- The amount of refund due to him or to such other person
Every person who is deemed to be an assessee under any provision of this Act.
Every person who is deemed to be an assessee-in-default under any provision of this Act.
Assessment – Section 2(8)
Assessment means It is the procedure of examining of income tax return by income tax department.
Assessment it is a large topic. some of the example of the assessments under the income tax Act,
- Re-assessment under section 147
- Scrutiny Assessment under section 143(3)
- Best Judge Assessment under section 144
- Summary Assessment
Person -Section 2(31)
Under this section person means large definition which is includes the followings under the Income tax Act
- Individual
- HUF
- Company
- Firm
- AOP/BOI
- Local Authority
- Artificial juridical person
Company- Section 2(17)
Company means it is larger definition under the income tax. So, it includes
- Any body corporate incorporated by or under the laws of a country outside India, i.e., foreign company; or
- Any Indian company as defined in section 2(26) as per the companies Act
- Any institution, association or body which is assessable or was assessed as a company for any assessment year under the Indian Income-tax Act, 1922 or for any assessment year commencing on or before 1.4.1970 under the present Act;
- Any institution, association or body, whether incorporated or not and
- Whether Indian or non-Indian, which is declared by a general or special order of the CBDT to be a company for such assessment years as may be specified in the CBDT’s order.
Domestic company- Section 2(22A)
It means an Indian company or any other company which, in respect of its income liable to income-tax, has made the prescribed arrangements for the declaration and payment of dividends (including dividends on preference shares) within India, payable out of such income.
Indian company -Section 2(26)
Two conditions should be satisfied so that a company can be regarded as an Indian company –
- The company should have been formed and registered under the Companies Act, 19562 and
- The registered office or the principal office of the company should be in India.
The expression ‘Indian Company’ also includes the following provided their registered or principal office is in India:
- A corporation established by or under a Central, State or Provincial Act (like Financial Corporation or a State Road Transport Corporation);
- An institution or association or body which is declared by the Board to be a company under section 2(17)(iv);
- A company formed and registered under any law relating to companies which was or is in force in any part of India [other than Jammu and Kashmir and Union territories mentioned in sub-clause (v) below];
Foreign company -Section 2(23A):
Foreign company means a company which is not a domestic company.
Firm- Section 2(23)
The terms ‘firm’, ‘partner’ and ‘partnership’ have the same meanings as assigned to them in the Indian Partnership Act, 1932. In addition, the definitions also include the limited liability partnership and a partner of limited liability partnership as they have been defined in the Limited Liability Partnership Act,2008. However, for income-tax purposes a minor admitted to the benefits of an existing partnership would also be treated as partner.
Association of Persons (AOP)
When persons combine together for promotion of joint enterprise they are assessable as an AOP, if they do not in law constitute a partnership. In order to constitute an association, persons must join for a common purpose or action and their object must be to produce income; it is not enough that the persons receive the income jointly. Co-heirs, co-legatees or co-donees joining together for a common purpose or action would be chargeable as an AOP.
Example: Mr. Santosh, Naveen & Co. (Firm) and Local search (P) Ltd. join together to carry on digital marketing activity otherwise than as a partnership firm, such an association will be recognized as an association of persons.
Body of Individuals (BOI)
It denotes the status of persons like executors or trustees who merely receive the income jointly and who may be assessable in like manner and to the same extent as the beneficiaries individually. Thus, co-executors or co-trustees are assessable as a BOI as their title and interest are indivisible. Income-tax shall not be payable by an assessee in respect of the receipt of share of income by him from BOI and on which the tax has already been paid by such BOI. For e.g., mutual trade associations, members club, etc.
Local Authority
The term means a municipal committee, district board, body of port commissioners or other authority legally entitled to or entrusted by the Government with the control or management of a municipal or local fund
Artificial Juridical Persons
Artificial Juridical Persons are the entities which are not natural persons but are separate entities in the eyes of law. This is a residual category could cover all artificial persons with a juristic personality not falling under any other category of persons. Deities, Bar Council, Universities are some important examples of Artificial Juridical Persons.
