Home > Income Tax > Miscellaneous > Definitions under Income Tax Act

Definitions under Income Tax Act

What is Assessment year?

Assessment year is the year in which the income of the previous year is to be assessed. In other words assessment year is the succeeding year of the year whose income is to be taxed. For example if we are calculating taxable salary which is received in year 2015-16 then the assessment year is 2016-17. In short it is written as A.Y or AY.

What is Previous year?

Previous year is the year for which we are calculating the income tax. For example are calculating taxable salary received in year 2015-16 then the year 2015-16 is the previous year and assessment year is 2016-17 for this. In short it is written as P.Y or PY.

Who is assessee?

Assessee means a person by whom income-tax is payable under the act. It may be an individual or an artificial person.

Assessee includes

  1. Individual
  2. Hindu Undivided Family (HUF)
  3. Company
  4. Firm (Partnership firm)
  5. Association of persons (AOP)
  6. Body of Individuals (BOI)
  7. Local Authority
  8. Any other artificial judicial person

An individual doing business as sole proprietor is not a separate assessee. It is assessed as an individual only even if a person does many businesses with different names.

About Rohit Pithisaria

Rohit Pithisaria founded TaxAdda in July 2012. He is Practicing Chartered Accountant from Jaipur and been in practice for more than 7 years. He is actively writing from very beginning of his professional career and is author of various tax articles and blogs.
close-link
Subscribe to our Newsletter for weekly updates
GST, Income Tax, Finance and more
Give it a try, you can unsubscribe anytime.
close-link
close-link