Assessee U/S 2(7) Of Income Tax Act 1961

Summary

This video provides an overview of key definitions related to income tax, specifically focusing on the term 'Assessee' under the Income Tax Act, 1961. It explains who qualifies as an Assessee, highlighting individuals who are required to pay taxes on their income. The video touches upon different income sources like salary, capital gains, and property rent, and discusses scenarios involving minors and non-residents. It also clarifies the role of a representative Assessee in cases where individuals are unable to pay their taxes. Overall, the video simplifies important tax-related concepts for viewers preparing for exams like SSC.

Takeaways

• 📄 The video explains some key definitions from the Income Tax Act, 1961, focusing on terms like 'Assessee.'
• 💼 An 'Assessee' is defined as a person who pays taxes and is liable under the Income Tax Act.
• 🏦 The video covers tax liabilities, including those on profits, salaries, and other types of income.
• 💰 It explains that all individuals earning income within a financial year are liable to pay taxes.
• 🏡 An example is given of a non-resident who owns property in India and how a representative can file taxes on their behalf.
• 👨‍👩‍👧 The concept of a 'representative Assessee' is introduced, highlighting cases where a third party is authorized to file taxes.
• 👶 Minors and non-residents with properties can have representatives to manage their tax filings.
• 🏘 The video also discusses inheritance, mentioning how taxes are filed on properties after the owner’s death.
• 💼 The term 'capital gains' is mentioned in the context of property transfers and the applicable taxes.
• 📝 The video encourages viewers to learn more about specific topics, like audit requirements and tax filing for different types of income.

Q & A

What is an 'Assessee' as per the Income Tax Act, 1961?

An 'Assessee' refers to a person who is liable to pay taxes under the Income Tax Act. This could be an individual, company, or any entity required to file taxes.

What types of income are chargeable under the Income Tax Act?

The Income Tax Act considers various forms of income, including salary, profits and gains from business, capital gains, and income from other sources. Each of these may be subject to tax, depending on the provisions of the Act.

What is the definition of a 'Normal Assessee' in the context of the video?

A 'Normal Assessee' is someone who pays their taxes independently, typically without the need for a representative or legal guardian. This individual is liable for their own income taxes.

Who can act as a 'Representative Assessee'?

A 'Representative Assessee' is a person authorized to handle the tax matters of another person, especially when that person is a minor, non-resident, or incapable of managing their tax affairs.

Under what circumstances is a Representative Assessee required?

A Representative Assessee is required in situations such as when the individual is a minor, non-resident, or deceased, and their tax matters need to be handled by a third party.

What happens if a person passes away without leaving a will regarding their property?

If a person passes away without a will, the legal heirs or representative assessee may become responsible for managing the property and handling the tax obligations of the deceased.

What is the concept of 'Capital Gains' as mentioned in the video?

Capital Gains refer to the profits earned from the transfer of a capital asset. These gains can be categorized as short-term or long-term, and both are chargeable to tax under specific provisions.

How is rental income from properties handled for tax purposes?

Rental income from properties is taxable under the 'Income from House Property' category. If the property owner is a non-resident or unable to handle their taxes, a representative can manage their tax filings.

What penalties are discussed in the video for non-compliance with tax filing?

Penalties may be imposed for not filing income tax returns or not paying taxes on time. Interest and penalties can be levied for delayed payment or filing as per the Income Tax Act.

What should an employer do regarding tax deductions for employees?

Employers are required to deduct tax at source (TDS) from an employee's salary and deposit it with the government. Failure to do so can result in penalties for both the employer and the employee.