An income tax assessee is someone who needs to pay taxes or any sum of money to the government, as per the provisions of the Income Tax Act. Any person who has generated income or sustained losses becomes an income tax assessee.
Let us know this in detail.
As per Section 2(7) of the Income Tax Act, an assessee is any person liable to pay taxes for income earned or losses sustained in a particular Assessment Year (AY). Additionally, you can define assessee in income tax through these pointers:
An assessee can also be an individual who is liable to pay the taxes of another person. That said, the Income Tax Act divides the assessee into different types.
The Income Tax Act categorises an assessee into four different types. Find details about it below:
A normal assessee is an individual who pays tax for his/her total income during a particular financial year or the loss that he/she has sustained. Additionally, if a person has to pay any penalty or interest to the government or wants to receive tax refunds, he/she is also considered an assessee.
Furthermore, an individual who has income tax procedures pending against him/her is a regular assessee, regardless of whether he/she owes any tax or not.
In some circumstances, a person may be required to pay taxes on income or losses incurred by a third party. Those people are referred to as representative assesses.
Typically, a representative assessee comes into play when the person liable to pay tax is a child, minor or medically handicapped. Such individuals will not be able to file their taxes on their own. They may have an agent or a guardian acting on their behalf.
For instance, let us consider the situation of Mr Roy. He has spent the last seven years living overseas and receives rent from two houses he owns in India. In order to file taxes in India, he takes the help of a relative named Mr Sharma. Thus, Mr Sharma serves as a representative assessee in this situation.
As Mr Sharma is the property’s guardian and stands in for Mr Roy, he will be required to furnish the relevant paperwork if the Assessing Officer intends to look into the tax filing.
Sometimes, the concerned authorities might assign a certain individual the responsibility of tax filing. Such individuals are called deemed assessees. It can be:
Moreover, as per this categorisation, a person can pay taxes on behalf of another if he/she falls into any of the following categories:
A person who fails to carry out his statutory duties under the Income Tax Act, such as not paying taxes to the government or filing an income tax return, is called an assessee-in-default.
For instance, before paying wages to an employee, a company is required to deduct tax. Following this, the employer must deposit the deducted amount to the government within a specified due date. If he/she fails to do so, he/she will become an assessee-in-default.
As a rule of thumb, an income tax assessee must file his/her tax returns in due time. Apart from that, such individuals have to fulfil a few other roles and duties, such as:
An income tax assessee is anyone who is liable to pay taxes or needs to undergo tax procedures. Such persons can represent individuals, companies, partnership firms, associations or local authorities.
An assessee is responsible for filing tax returns, paying taxes and responding to notices from the Income Tax Department.
Ans. Assesses must mandatorily submit their ITR details within 30 days of the notice issuance. Note that you must not confuse this date with the date that you received the notice. Additionally, you also have to furnish the details pertaining to the income for which you avoided tax payment.
Ans. To add a representative assessee for your ITR filings, you need to visit the official website of the Income Tax Department and log in to your account. After that, open the Accounts tab and click on ‘Add/Register as Representative’ to continue.
Ans. As per the Income Tax Rules, certain types of income are exempt from taxation. In simple terms, these earnings do not form a part of an individual’s annual income. Such types of income are called exempted income.
Ans. As per the Income Tax Act, an assessee is an individual liable to pay tax on his/her overall income or loss for a particular AY. Thus, individuals who do not have to pay taxes to the government are not income tax assesses.
Ans. Self-employed individuals get to enjoy tax exemption on various categories of income. These might include income from agriculture, dividends, capital gains and interest on funds. However, you need to disclose these incomes beforehand under Schedule EI while filing ITR.
This article is solely for educational purposes. Navi doesn't take any responsibility for the information or claims made in the blog.
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