Business Accounting Tutorials | Taxation Terminologies

Let’s learn more about Taxation Terminologies:

Assess: An assessee means a person by whom any tax or any other sum of money is payable under income tax Act. It include deemed assessee [section(2(7) of income Tax Act].
Person: ‘Person’ includes, individual, HUF, Company Partnership Firm. Association of Person (AOP) or body of individuals whether incorporated or not, Local Authority like Municipality etc. Article judicial person not falling in any of the aforesaid categories e.g.
Assessment Year: Assessment year means the period of 12 months commencing on the 1st day of April every year
Previous Year: Previous year means the financial year immediately preceding the assessment year. If a business/profession is newly set up, previous year is the period from date of setting up that business or profession and ending with the financial year.
Hindu Undivided Family (H.U.F): A HinduUndivided Family consist of all person lineally descended from a common male ancestor. It assessable in respect of income derived from the joint family corpus. However, income earned by individual’s members of HUF in their individuals and personal capacities is taxed as their personal income. Such income is not treated as income of HUF.