Updated on: May 2nd, 2023 | 7 min read

The Income Tax Act, 1961 defines an income tax assessee as any individual obligated to pay taxes on their earnings or losses incurred within a specific assessment year, as outlined in Section 2(7) of the Act. This includes:

1. Individuals evaluated for their income.
2. Persons paying taxes for another individual's income.
3. Individuals eligible for tax refunds due to losses or affected circumstances.

The Act identifies several "persons" subject to taxation:

• Individuals
• Hindu Undivided Families
• Partnership Firms
• Companies
• Associations of Persons (AOP) or Bodies of Individuals (BOI)
• Local Authorities
• Artificial Judicial Bodies not covered by other categories

Normal Assessee

A "normal assessee" is anyone who must pay taxes on income earned in a financial year, including those with previous financial year incomes or losses. This encompasses individuals subject to interest, penalties, or expecting tax refunds. For example, Mr. A, a salaried individual consistently paying taxes on time, is a normal assessee.

Representative Assessee

A "representative assessee" handles tax responsibilities on behalf of non-residents, minors, or mentally incapacitated individuals. For instance, Mr. Y files taxes in India for his relative, Mr. X, residing abroad, acting as Mr. X’s representative assessee.

Deemed Assessee

A "deemed assessee" is made responsible by law to pay taxes. This includes:

• Eldest sons or heirs of deceased individuals without a will.
• Executors or heirs named in a will.
• Guardians for minors or incapacitated individuals.
• Agents for non-resident Indians receiving income from India.

For example, Mr. P’s niece becomes the executor and deemed assessee for his commercial property after his death, handling tax payments on rental income.

Assessee-in-default

An "assessee-in-default" is one who fails to adhere to statutory tax obligations, such as an employer failing to deduct and remit employee tax on time.

Roles and Responsibilities of an Assessee

Assessees must file returns and pay taxes promptly. Delays may result in notices from the Income Tax department requiring an explanation. Upon notice reception, an assessee should:

1. File returns for the specified assessment year.
2. Request a notice explanation copy from the assessing officer.
3. Challenge the notice’s validity if reasons are seen as inappropriate.
4. Justify objections to the notice.
5. Seek further clarifications if objections are dismissed.
6. File a writ petition with the High Court against the notice even before or after the assessment.
7. Submit relevant income details within 30 days after the notice’s issuance, avoiding future complications.