Who is Assessee Sec.2(7)


 

Income Tax Act 1961 (Act no. 43) defines 'assessee' as a person by    whom any tax or any other sum of money is payable under this Act, and includes -

  • Every person in respect of whom any proceeding under this Act has been taken for the assessment of his income or of 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 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.


 

What is Assessment Sec.2 (8)


 

Assessment includes Reassessment. Assessment is a wide term where assessee’s income will be converted into taxable income and tax liability will be calculated on taxable income. Assessment includes :-

  • Calculating taxable income
  • Calculating tax on taxable income
 

What is Assessment year Sec.2 (9)


 

Assessment year u/s.2(9) means the period of twelve months commencing on 1st April every year and ending on 31st March of the next year. Income of previous year of an assessee is taxed during the following assessment year at the rates prescribed by the relevant Finance Act.

 

What is Previous year (Sec.3)


 

Previous year (Sec.3) is a period of twelve months commencing immediately preceeding the Assessment year. The Financial Year in which the income is earned is known as the previous year. Any financial year begins from 1st of April and ends on subsequent 31st March. The financial year beginning on 1st of April 2010 and ending on 31st March 2011 is the previous year for the assessment year 2011-2012.

 
 
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