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  Q. What is an "Assessment Year"? A. Assessment year is defined as a year in which the income of the previous year is to be assessed. It starts on April 1st and ends on March 31st of the next year. Q. What is "Previous year"? A. The Financial Year in which the income is earned is known as the previous year. The financial year begins from April 1st and ends on the subsequent March 31st. The financial year beginning on April 1st, 2000 and ending on March 31st, 2001 is the previous year for the assessment year 2001-2002. In other words Income earned during the previous year 2000-01 is taxable in the immediate following assesment year (i.e. 2001-02). Q. Who is an "Assessee"? A. Assessee means a person by whom any tax or any other sum of money is payable under the Income Tax Act (the Act) and includes: a) every person in respect of whom any proceeding under the Act has been taken for the assessment of his income or loss and the amount of refund due to him; b) every person who is assessable in respect of the incomes or loss of another or who is deemed to be an assessee under any provisions of the Income Tax Act; c) every person who is deemed to be an assessee in default under any provision of this Act. Back To TopQ. Who is a "person " as defined under the Income Tax Act? A. Section 2(31) of the Income Tax Act defines a person. The definition includes
Back To TopQ. What is a Hindu Undivided Family (HUF) ? A. Under The Income Tax Act, A Hindu undivided family is treated as a separate entity for the purpose of assessment. The term Hindu undivided family " has not been defined under the Income tax act. The expression is however defined under the Hindu Law as a family, which consists of all persons lineally descended from a common ancestor and includes their wives and unmarried daughters. The relation of a Hindu undivided family does not arise from a contract but arises from status. Q. How is the residential status determined? A. The duration for which an individual is present in India determines the residential status of the individual. Based on the time spent by an individual,she/he may be (a) resident and ordinarily resident, (b) resident but not ordinarily resident, or (c) non-resident. Q. Why is it necessary to find out the residential status of the individual? A. The residential status of an individual determines the taxability of the income. For e.g., income earned outside India will not be taxable in the hands of a non- resident but will be taxable in case of a resident individual. Back To TopQ. Could deemed incomes be explained by examples? A. The following incomes are deemed to have been received in India: -
Q. What does income deemed to accrue in India refer to? A. Income deemed to accrue refers to income which has not actually accrued in the hands of the assessee but is, nevertheless, to be treated as if it has accrued in his favor. The following types of incomes are deemed to accrue or arise in India:
Back To TopQ. Who is an Assessing Officer (A.O.)? A. Assessing Officer means the Income Tax Officer, or the Assistant Commissioner of Income Tax, or the Deputy Commissioner of Income Tax, or the Joint Commissioner of Income Tax, having jurisdiction over an assessee. The Assessing Officer makes the assessment and collects taxes under the Income Tax Act. Q. What are 'heads of income'? A. Under Indian law income or loss is first assessed under a particular head of income in accordance with the mode of computation laid down in the provisions relating to that 'head of income'. The total income assessable under the Income Tax Act is the total of all heads of income, which are:
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