Meaning of Assessee [Section 2(7)]: Who is Liable to Pay Income Tax?

The term “assessee” is important in Income Tax as it defines the person who will be liable to pay income tax under different circumstances. The “Assessee” may be any person who is liable to pay taxes on the income earned by him or pay taxes on behalf of any other person.

Who is Liable to Pay Income Tax – Meaning & Types of Assessee [Section 2 (7)]

It means a person covered by any one of the following categories –

1. Regular/Normal Assessee

  • A person by whom any tax or any other sum of money (e.g. penalty/ interest) is payable under Income Tax.
  • Every person in respect of whom any proceeding under this Act has been taken for the assessment of his income/loss; or the amount of refund due to him.

This category covers a person to pay taxes on the income earned by him.

2. Deemed Assessee or Representative Assessee

  • Every person who is deemed to be an assessee under the Act.
  • Every person in respect of whom any proceeding under this Act has been taken for the assessment of the income/loss of any other person in respect of whom he is assessable or the amount of refund due to him or to such other person.

This category covers a person to pay taxes on behalf of any other person in specified circumstances.

Examples of Deemed Assessee:

  • Legal representative of a deceased person – (a) if a person dies intestate (without writing will) then his elder son or other legal heirs (b) if a person dies after writing will the executor of property
  • Agent of a non-resident
  • Trustee of a trust
  • Guardian of a minor

3. Assessee in Default:

Every person who is deemed to be an assessee in default under the provisions of Act.

This category covers a person to pay taxes or other sums (penalty/ interest) in the specified circumstances when he fails to fulfill his legal duty as per the Income Tax Act. For example, a person who fails to deduct tax at source (TDS).

 

FAQs on “Assessee”

What is the Meaning of Assessee in Hindi – अस्सेस्सी का हिंदी में अर्थ क्या होता हैं?

Assessee का हिंदी में शाब्दिक अर्थ होता हैं “निर्धारिती” या “कर निर्धारिती” यानि कि ऐसा व्यक्ति जिसके कर का निधारण करना हैं|

आयकर अधिनियम 1961 की धारा 2(7) के अनुसार अस्सेस्सी का अर्थ हैं ऐसा व्यक्ति जिससे आयकर अधिनियम के तहत किसी भी प्रकार का कर या कोई अन्य रकम (जैसे पेनल्टी या ब्याज) बकाया हो या उसके सम्बन्ध में कोई रिफंड बनता हो| इनकम टैक्स में इसके अलावा विशेष परिस्थियों में प्रतिनिधि (Representative) और टैक्स डिफाल्टर को भी अस्सेस्सी माना जाता हैं|

What is the difference between “assessee” and “person” under Income Tax?

The terms “assessee and “person are not synonyms. The term assessee is defined in section 2(7) whereas the definition of ‘person’ is given in section 2(31). Every ‘assessee is a ‘person’ but every ‘person’ may not be an ‘assessee’.

Who is responsible to pay tax and file Income Tax returns in case of death of taxpayer?

In the case of death of the person, the legal representative of the deceased person shall be liable to pay tax and file income tax returns [Section 159 of Income Tax Act, 1961].

 

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Who will be the representative assessee in case of minor child