The students who are preparing for Income tax studies
\nis required to understand the basic concepts of the income tax act 1961. Some
\nof definitions under income tax act are explained below in the simple language so
\nstudent can understand it easily. <\/p>\n
Person – Section 2 (31)<\/strong><\/p>\n Term \u201cperson\u201d is wide term in Income Tax act. The <\/p>\n These are eight categories of person chargeable <\/p>\n Assessee: Section 2 (7)<\/strong><\/p>\n \u2018Assessee\u2019 means a Person by Ordinary Assessee <\/strong>: It includes \u2026<\/p>\n <\/p>\n DeemedAssessee<\/strong>:<\/strong><\/p>\n A person may not be liable only for his own income or loss but
\nterm person includes: <\/p>\n\n
\n(HUF) – It is a relationship created due to operation of Hindu Law. The Manager
\nof HUF is called \u201cKarta\u201d, Karta is generally the senior most person
\nin the family and the
\nmembers of HUF are called \u2018Coparceners\u2019.<\/li>\n
\nperson registered under Indian Companies Act 1956 or Companies Act 2013 or any
\nother laws<\/li>\n
\nresult of partnership agreement is called as firm. Partnership is defined as a relation between two
\nor more persons who have agreed to share the profits of a business carried on
\nby all of them or any of them acting for all. The owners of a partnership
\nbusiness are individually known as the “partners” and collectively as
\na “firm”.<\/li>\n
\ntogether to carry on a joint activities and they do not constitute partnership firm,
\nthey are assessable as an Association of Persons. Example \u2013 Co-operative
\nhousing society <\/li>\n
\nhas the same meaning of association of person only the difference between these
\ntwo is that AOP may have members who are non-individual where as BOI have all
\nindividual members. Example \u2013 Club <\/li>\n
\nAuthority (LA) – Municipality, Panchayat, Cantonment Board, etc.
\nare called Local Authority<\/li>\n
\nJudicial Person (AJP) – Statutory Corporations like university is
\ncalled as artificial judicial person <\/li>\n<\/ul>\n
\nto tax under the Act. The aforesaid
\ndefinition is inclusive and not exhaustive. Therefore, any person,
\nnot falling in the above-mentioned eight categories, may still fall in the four
\ncorners of the term \u201cPerson\u201d and accordingly may be liable to tax.<\/p>\n
\nwhom any Tax or any other sum of money is payable
\nunder this Act. Assessee is divided into two basic categories.<\/p>\n\n
\non. It is immaterial whether any tax or
\nother amount is payable by him or not ;<\/li>\n
\n139(3).<\/li>\n
\nPenalty is payable under this Act ; or<\/li>\n
\nthis Act. <\/li>\n<\/ul>\n
\nalso on the income or loss of other persons e.g. Guardian of Minor, Agent of a
\nNon-Resident or legal heir of the deceased person, etc. in such case the
\npersons responsible for the assessment of income of such persons are called Representative
\nAssessee. Such person is deemed to be an Assessee.<\/p>\n