Assessee in income tax 2025 of India : Meaning
Under the Income-tax Act, 2025, an “assessee” primarily means a person by whom any tax or any other sum of money is payable under the Act.
Additionally, the definition broadly includes the following categories of persons:
- Persons subject to proceedings: Every person in respect of whom any proceeding under the Act has been taken for the assessment of their own income, the loss they have sustained, or the refund due to them.
- Representatives/Guardians: Every person in respect of whom any proceeding has been taken for the assessment of the income, loss, or refund of any other person in respect of which they are assessable.
- Deemed Assessees: Every person who is legally deemed to be an assessee under the provisions of the Act.
- Assessees in Default: Every person who is deemed to be an “assessee in default” under the Act.
Examples of Deemed Assessee
Under the Income-tax Act, 2025, a “deemed assessee” is a person who may not necessarily be paying tax on their own personal income, but is legally treated as an assessee because they are responsible for the tax assessment and liabilities of another person.
Here are the specific examples provided under the Act where a person is legally deemed to be an assessee:
1. Legal Representative of a Deceased Person: When a person dies, their legal representative becomes liable to pay any tax or sum the deceased would have been liable to pay if they had not died. For the purposes of making an assessment and levying the tax, the legal representative of the deceased is deemed to be an assessee.
2. Representative Assessees: A “representative assessee” is someone who manages income or property on behalf of someone else. Every representative assessee is legally deemed to be an assessee under the Act. Specific examples of representative assessees include:
- Guardian or Manager: A guardian or manager who receives income on behalf of a minor, or a person who is mentally ill or of unsound mind.
- Agent of a Non-Resident: A person who acts as the agent for a non-resident in respect of their income.
- Trustees: A trustee appointed under a legally executed trust deed (or an oral trust) who receives income on behalf of, or for the benefit of, any person.
- Court-Appointed Managers: The Court of Wards, the Administrator-General, the Official Trustee, or any receiver or manager appointed by a court who receives income on behalf of another person.