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
\nterm person includes: <\/p>\n

<\/p>\n

\n
•          Individual – It means to a natural human being whether male or Female, Minor or Major <\/li>\n
•          Hindu Undivided Family
  \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
•          Company- It is an artificial
  \nperson registered under Indian Companies Act 1956 or Companies Act 2013 or any
  \nother laws<\/li>\n
•          Firm- The entity which comes into existence as
  \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
•          Association of Persons (AOP) – When persons combine
  \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
•          Body of Individuals (BOI) \u2013 The body of individuals
  \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
•          Local
  \nAuthority (LA) – Municipality, Panchayat, Cantonment Board, etc.
  \nare called Local Authority<\/li>\n
•          Artificial
  \nJudicial Person (AJP) – Statutory Corporations like university is
  \ncalled as artificial judicial person <\/li>\n<\/ul>\n

  These are eight categories of person chargeable
  \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

  <\/p>\n

  Assessee: Section 2 (7)<\/strong><\/p>\n

  \u2018Assessee\u2019 means a Person by
  \nwhom any Tax or any other sum of money is payable
  \nunder this Act. Assessee is divided into two basic categories.<\/p>\n

           Ordinary Assessee <\/strong>: It includes \u2026<\/p>\n

  <\/p>\n

  \n
  •   Any person against whom some proceedings under this act are going
    \non. It is immaterial whether any tax or
    \nother amount is payable by him or not ;<\/li>\n
  •   Any person who has suffered loss and has filed return of Loss u\/s
    \n139(3).<\/li>\n
  •   Any person by whom some amount of Interest , Tax or
    \nPenalty is payable under this Act ; or<\/li>\n
  •   Any person who entitled to refund of Tax under
    \nthis Act.         <\/li>\n<\/ul>\n

            DeemedAssessee<\/strong>:<\/strong><\/p>\n

    A person may not be liable only for his own income or loss but
    \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

    Assessment Year: Section 2(9)<\/strong><\/p>\n

     \u201cAssessmentYear\u201d means the period of 12 months commencing on the 1st day of
    \nApril and ending on 31^{st<\/sup> March of every year, for example assessment
    \nyear 2014-2015 will commence on 1st<\/sup> April 2014 and end on 31st<\/sup>
    \nMarch 2015. Income earn in the previous year is taxed in the assessment year. <\/p>\n}

    Previous Year: Section 3<\/strong><\/p>\n

    Previous year is the financial year for period of 12
    \nmonths commencing on the 1st day of April and ending on 31^{st<\/sup> March
    \nof every year. Previous Year is the preceding financial year of the Assessment
    \nYear. For example, for assessment year 2014-2015 previous year is 2013-2014. The
    \nyear in which income earn is called as previous year and the year in which
    \nincome is taxable is known as assessment year. <\/p>\n","protected":false},"excerpt":{"rendered":"}

    The students who are preparing for Income tax studies is required to understand the basic concepts of the income tax act 1961. Some of definitions under income tax act are explained below in the simple language so student can understand it easily. Person – Section 2 (31) Term \u201cperson\u201d is wide term in Income Tax … Read more<\/a><\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_uag_custom_page_level_css":"","_mi_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[9],"tags":[26],"class_list":["post-538","post","type-post","status-publish","format-standard","hentry","category-students","tag-income-tax"],"yoast_head":"\n