Assessee [Section 2(7)]

'Assessee' means a person by whom any tax or other sum of money is payable under this Act, and includes

• (i) Every person in respect of whom any proceedings under this Act has been taken for the assessment of his income or (ii) of the income of any other person in respect of which he is assessable or (iii) of the loss sustained by him or by such other person, or (iv) of the amount of refund due to him or to such other person;
• Every person who is deemed to be an assessee under any provision of this Act.
• Every person who is deemed to be an assessee in default under any provision of this Act.

From the above definition, assesses are classified into three types:

(1)   Ordinary Assessee: Under this type, 4 categories are included:

• Proceedings of the Act: Any person against whom proceedings under the income tax Act are going on, irrespective of any tax or any amount payable by the person.
• A person who filed return of loss: Any person who has made loss and filed return of loss under section 139 (3).
• A person who has to pay amounts: Any person who has to pay interest, tax or penalty under the income tax act.
• A person who is entitled to refund: Any person who is entitled to refund of tax under the income tax Act.

(2) Representative or deemed Assessee: In certain cases, a person is liable not only for his own income or loss but also for the income or loss of other persons.  In such cases, he is treated as ‘deemed’ or ‘representative assessee’.  The following are the situations:

• In the case of deceased person: If a person dies after waiting his will, the executors of the property are deemed assesses.
• In case of lunatic or minor or idiot: In case of these special individuals having taxable income, their guardian is deemed assessee.
• Non-residents: In case of non-residents having income in India, the person acting on his/her behalf is deemed as assessee.

(3) Assessee-in-default: If a person fails to fulfil his statutory obligation as per the income tax act he is called “Assessee in default’

• Employers: An employer paying salary has to deduct tax and remit it to the Govt. Treasury.  If he fails to deduct or does not remit it to the treasury he is called assessee in default.
• A person paying interest: A person paying interest is under statutory obligation to deduct tax at source.  If he does not deduct or does not remit it to the treasury, he is treated as assessee in default.