The 1961 Act provides for an inclusive definition of the word "person". It includes an individual, HUF, company, firm, association of persons, body of individuals, local authority and artificial jurisdical person.
Taxable entities like co-operative society, any other society, non-profit organisation and private discretionary trust are assessed as association of persons.
Similarly, the institution of Government, though otherwise exempt from tax in respect of its own income, is required to fulfill certain obligations in terms of withholding of tax and filing of information.
In the Code, Government, trust, co-operative society, any other society and any non-profit organization will be included in the definition of 'person'.
The persons specified in the Third Schedule will not be liable to income tax either wholly or partly, as specified therein.
Under the 1961 Act, assessee is a person by whom any tax or any other sum of money is payable or a person in respect of whom any proceeding under the 1961 Act has been taken (including representative assessee) or any person who is deemed to be an assessee or deemed to be an assessee in default.
The definition is important since an assessee has certain rights and obligations under the 1961 Act. In the Code it is proposed to include the following "other persons" within the definition of 'assessee':-
(a) any person to whom any amount of refund is payable under the Code; and
(b) any person who voluntarily files a return of tax bases irrespective of the fact that he is otherwise not under an obligation to do so.
This change will enable taxpayers to obtain refund of tax deducted at source.
It will also help tax payers currently below the threshold level to report their income and maintain a track record of filing returns in anticipation of earning higher - and hence taxable - incomes in the future.
Taxable entities like co-operative society, any other society, non-profit organisation and private discretionary trust are assessed as association of persons.
Similarly, the institution of Government, though otherwise exempt from tax in respect of its own income, is required to fulfill certain obligations in terms of withholding of tax and filing of information.
In the Code, Government, trust, co-operative society, any other society and any non-profit organization will be included in the definition of 'person'.
The persons specified in the Third Schedule will not be liable to income tax either wholly or partly, as specified therein.
Under the 1961 Act, assessee is a person by whom any tax or any other sum of money is payable or a person in respect of whom any proceeding under the 1961 Act has been taken (including representative assessee) or any person who is deemed to be an assessee or deemed to be an assessee in default.
The definition is important since an assessee has certain rights and obligations under the 1961 Act. In the Code it is proposed to include the following "other persons" within the definition of 'assessee':-
(a) any person to whom any amount of refund is payable under the Code; and
(b) any person who voluntarily files a return of tax bases irrespective of the fact that he is otherwise not under an obligation to do so.
This change will enable taxpayers to obtain refund of tax deducted at source.
It will also help tax payers currently below the threshold level to report their income and maintain a track record of filing returns in anticipation of earning higher - and hence taxable - incomes in the future.