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written by | September 22, 2022

Income Tax Assessee: Know More About Concept and Type

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An assessee under the Income Tax Act, 1961 is an individual who is liable to pay income tax to the government for a particular financial year. Individuals who have already paid taxes are also considered assessees under the Act. Usually, an assessee is liable to pay taxes for himself, but in some instances, he may also be liable to pay taxes on behalf of someone else. Due to this consideration, the Income Tax Act has classified assessees into different categories. This article gives detailed information about the Income Tax Assessee and various types of assessments under the Income Tax Act.

Did you know?

If an individual's income is less than the exempted limit, they are not considered an assessee. 

Also Read: Taxable Income: What is it, and How Can You Reduce It?

Types of Assessee in Income Tax

The Income Tax Act classifies the assessee into four different categories. The categories/ types are mentioned below: 

  • Normal Assessee.
  • Deemed Assessee.
  • Assessee in Default.
  • Representative Assessee.

Normal Assessee

An individual liable to pay taxes to the government for his income earned for a particular financial year or who has already been paying taxes during the preceding years belongs to the Normal Assessee category. Any individual who makes payments to the government as interest or penalty or is entitled to receive a tax refund under the IT Act too is an assessee and is grouped under the normal assessee category. 

Deemed Assessees

An individual given the responsibility by legal authorities to pay taxes for another is a deemed assessee. The considered assesses usually:

  • Either the executors or legal heirs of a dead person. The dead person has already passed on the property to the executors.
  • If the departed person has not left a will, the elder son or another legal heir can be considered an assessee.
  • The guardian of a minor or a mentally unstable person is considered a deemed assessee. 
  • In the case of a non-resident Indian with sources of income in India, his agent is treated as a deemed assessee.

Assessee-in-Default

An individual who had failed to file his ITR within the stipulated period is an assessee-in-default. An employer comes under this category if he does not submit the TDS deducted from his employees' salaries to the government in time. Before disbursing the compensation, an employer deducts the TDS amount from the same and should submit it to the government. By failing to do so, he becomes an assessee-in-default. 

Representative Assessee

Sometimes an individual, besides filing ITR and paying his taxes, must do the same for another party. By doing so, he becomes a representative assessee. This is because he represents an individual(s) who cannot file and pay their taxes for specific reasons. Mostly, non-residents, minors, or mentally unstable persons need this assistance. Their representative assesses they are mostly their guardians or agents. 

Also Read: Learn about Exempt Income Under Section 10 of Income Tax in Detail

Income Tax Assessee - Duties and Responsibilities.

An Assessee must file their income tax returns and pay their taxes in time. Sometimes, the assessee fails to file the ITR within the stipulated period. Under such a circumstance, the IT department or the concerned assessing officer might notify the assessee enquiring about the delay. 

It becomes mandatory for the assessee to respond to the assessing officer stating the reason behind his inability to file the return in time. He should also see that he files the ITR after receiving the notice, as it is his responsibility to do so. 

Following are the duties and responsibilities of an assessee:

Paying Taxes and filing the ITR

  • A major responsibility of an assessee (belonging to any category) is to pay the taxes and also file the returns on time for each financial year. 
  • The tax return should be filed by due date such as 31st July, 30th September, etc.,  or by the extended date issued by the IT department relevant for each category. 

When the Assessee fails to file an ITR during the stipulated period he should do the following: 

  • Even if the assessee has delayed filing his tax return for a financial year, he must file the ITR immediately after receiving the notice from the department.
  • After filing the return, he should request the assessing officer to provide him with a copy stating the reasons for the issuance of the notice.
  • If the assessee is not satisfied with the answer to his request and finds that the reasons are not valid, he can file an objection challenging the notice.
  • The assessee must make sure that he has enough reasons to take recourse to the law against the notice issued to him by the IT department. 
  • The assessee can also request the concerned officer provide other reasons if the department does not entertain his claims. 
  • The assessee may also file a writ petition in the high court challenging the legality of the notice before the completion of the scheduled assessment or reassessment. 
  • The assessee can carry on the same process even after completing the scheduled assessment. 
  • The assessee must provide details of the income tax return within thirty days from the notice's issuance date.
  • The details of the income for which tax payment was delayed or avoided and other related income details should be submitted to the concerned officer to prevent complications.
  • The assessee should clarify that he has requested the assessing officer to explain why the notice was issued.
  • He filed an objection against the notice because he found the reasons unsatisfactory. 
  • Also, he has objected to the validity of the notice knowingly.

Also Read: How To Calculate Income Tax On Shares Selling - Calculate Capital Gains Tax On Shares

Conclusion:

We hope this article has been of help in providing details about the Income Tax Assessee. Here at Khatabook, we provide precise and accurate information to our readers. Any individual who files an ITR and comes under the taxable income bracket is considered an assessee by the Income tax department.

Follow Khatabook for the latest updates, news blogs, and articles related to micro, small and medium businesses (MSMEs), business tips, income tax, GST, salary, and accounting.

FAQs

Q: Why is an Income Tax return filed?

Ans:

According to the Income Tax Act, 1961, it is mandatory for each citizen who crosses the exemption limit of the earnings to file an income tax return. The individual must provide accurate details of his profits, investments, losses, tax deductions, and others when filing the ITR.

Q: What is a corporate and non-corporate assessee?

Ans:

Companies registered under the Companies Act, of 1956 and 2013 are corporate assessees. All assesses but for the above-mentioned corporate assessee are termed as non-corporate assessee. Non-corporate assesses individuals and partnership firms.

Q: Who is an assessing officer?

Ans:

An officer of the Income-tax department responsible for assessment is the assessing officer (AO). He has the jurisdiction to assess the taxpayer.

Q: Can parents be representative assessee?

Ans:

Yes, parents/ guardians can be representative assesses. They have to apply on the minor child's behalf. The form to be filled out is 49A. This form is also applicable when used for a representative assessee for an adult. The form has to be submitted with the identity proofs of the parent.

Q: Who is Deemed assessee?

Ans:

An individual instructed by the legal authorities to shoulder the responsibility of taking care of another person's taxation affairs is a deemed assessee. These assessments are usually the legal heirs or executors of a deceased person. If the dead person has not left a will, the elder son or another legal heir will be considered the assessee. The parent/ guardian of a minor child or a mentally unstable person is a deemed assessee. For NRIs with sources of income in the country, their agents are treated as deemed assessees.

Q: What is an exempted income?

Ans:

Any income or revenue that is not taxable under the income tax law is considered exempted income.

Q: What is assessee meaning in income tax?

Ans:

Any individual who pays tax to the government under the Income Tax Act of 1961 is an IncomeTax Assessee. Every individual paying tax for the past several years, those who have filed for ITR for the first time, and those who act on another individual's behalf are all income tax assesses.

Q: Who can be an authorized representative per the Income Tax act?

Ans:

A competent individual can act on your behalf if you authorize him. This authorized representative can take care of your income tax affairs if you cannot attend to them yourself. According to the provisions, U/s 288 of the Income Tax Act, 1961 (clause (i) of sub-section (2)), any relative or employee of the assessee can be their authorized representative.

Q: What are the types of assessees in income tax?

Ans:

The different types of the assessee as per the Income Tax Act are mentioned below: 

  • Normal Assessee
  • Deemed Assessee
  • Representative Assessee
  • Assessee in default

Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.
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Disclaimer :
The information, product and services provided on this website are provided on an “as is” and “as available” basis without any warranty or representation, express or implied. Khatabook Blogs are meant purely for educational discussion of financial products and services. Khatabook does not make a guarantee that the service will meet your requirements, or that it will be uninterrupted, timely and secure, and that errors, if any, will be corrected. The material and information contained herein is for general information purposes only. Consult a professional before relying on the information to make any legal, financial or business decisions. Use this information strictly at your own risk. Khatabook will not be liable for any false, inaccurate or incomplete information present on the website. Although every effort is made to ensure that the information contained in this website is updated, relevant and accurate, Khatabook makes no guarantees about the completeness, reliability, accuracy, suitability or availability with respect to the website or the information, product, services or related graphics contained on the website for any purpose. Khatabook will not be liable for the website being temporarily unavailable, due to any technical issues or otherwise, beyond its control and for any loss or damage suffered as a result of the use of or access to, or inability to use or access to this website whatsoever.