Basic terms in taxation:-

Assessee-

In simple words, assessee means a Person by whom any tax or any other sum of money is payable is called assessee. E.g. Mr. Shyam is liable to pay income tax so he is assessee. So any person who is liable to pay tax or any sum of money under the Income Tax Act is called assessee.

Assessment year-

Assessment year means the period of twelve months starting on 1st April every year and ending on 31st March of the next year.

Previous year-

It is the financial year immediately preceding the assessment year. In simply words, the year in which income is earned is known as the previous year.

Income-

The definition of income includes profits and gains from business, any winnings from lotteries, crossword puzzles, races and other, income received from dividends, capital gain from transfer of capital assets, any voluntary contributions received by a trust or scientific research association.

Person-

The definition of a person is in an inclusive manner. It includes-

• An Individual. e.g. Mr. Aakash

• HUF ( Hindu Undivided Family).

• Company. e.g. ABC Pvt. Ltd.

• Partnership firm. e.g. M/S A and associates.

• An association of persons (AOP) or a Body of Individuals (BOI).

• Local Authority. e.g. Municipal Corporation.

• Every Artificial Juridical person not falling within any of the above categories. Pune University.

Gross Total Income –

Total of five heads i.e. aggregate of Income from Salaries, Income from House Property, Profits and Gains from Business or Profession, income from Capital Gains, Income from Other Sources.

Total Income-

Gross total income less (minus) permissible deduction under section 80 to 80 U.