Q: Elaborate section 2(7) of Income Tax Act, 1961 ?

Ans: The main source of income for the government is tax collection. Under section 2(7) of the Income Tax Act, 1961 , an assessee is a person who is liable to pay taxes to the government under the provisions of this act.  To assess means to evaluate.  So, the assessee is a person who has been evaluated for his income as well as for other's person income, for which the assessee will be assessable for the profit and loss experienced by that person.

According to the Income Tax Act, they are classified into the following categories:

Normal assessee: A normal assessee is a person who will be responsible to pay taxes on his income generated in the fiscal year. A typical assessee is a person who is responsible to pay penalties and refund. 

Assessee representative: In the case of a non-resident, juvenile or lunatic person, an another person who will be responsible for paying taxes on income or losses will be the assessee representative. 

Deemed representative: Any person who is regarded to be an assessee and pay taxes on behalf of another person in certain circumstances. Such persons are called deemed representatives. 

Assessee-in-default: The persons become assessees in default in condition that they fail to satisfy their statutory obligations to pay tax. For instance, prior to paying his employees, an employer must deduct tax from their pay. Besides it, it is also the duty of employer to pay deducted taxes to the government on time. If the employer gets failed to pay the tax, he becomes an assessee-in-default.

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