New Direct Tax code : Assessee

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.