Meaning of term used in Income Tax for Future Reference

 1. Who is required to register on income tax ?

Each and every person whose Income Exceeded the basic Exemption Limit as per Income Tax Act 2025 and holding a valid and active PAN (Permanent Account Number), (PAN is a 10-digit alphanumeric number issued by the department of income tax it consists of both numbers and alphabet).

 2. Who is Required to File an Income Tax Return ?

 Since, each & every person whose income exceeded the basic exemption limit as per Income tax Act 2025 holding valid and active PAN is required to register on the Income  Tax Portal the next question arises do every person holding PAN is required to file ITR? NO,  every person holding PAN is not required to file return, following are the circumstances  required to file ITR: -

• Every company registered is india, whether it is Public, Private or Foreign Company.
• Trust, NGO, Society availing benefits of 12A/80G.
• Partnership firms
• In case of loss and the assessee wants to carry forward the loss to next year.
• In case the person is eligible to claim Income Tax Refund.
• Political Party.
• Individual whose income exceeded the basic Exemption Limit as per Income Tax Act 2025. (For Basic Exemption Limit Refer FAQ’S)
• Individuals having special source of income like income for lottery, capital gains, dividend income etc.
• Person having income from foreign source or have any foreign asset.
• Universities/ college or any other similar institution.
• Alternate Investment Fund/ Real Estate Investment Trust.

 3. Documents Required for Registration  

 4. How to register on income tax portal

An assesse can get itself registered on the income tax portal by following the below mentioned steps:-

Step -1  Visit the Income Tax E- Filing Portal by following the below link

https://www.incometax.gov.in/.

Step -2   Click on register on the top right corner.

Step -3 Select Taxpayer

Step -4 Enter Pan number and click on validate to validate your PAN.

Step -5 Click on continue and on the next page enter your basic details

like Name, Date of birth, Gender, and Residential Status

Step - 6 After entering basic details click on continue, the portal will 

automatically validate your basic details. On the next page you 

will be required to fill your contact details like mobile number,

email id and address of the assessee.

Step -7 After entering the details click on continues you will provide the otp

on mobile and your email id enter both the otp’s, your registration is

successful.

Step - 8 - Confirm registration details and Create Password.

 5. What can you do after Registering on the Income Tax portal ?

• File an Income Tax return
• View/Download Tax Related Information
• Respond to certain Notices
• Access Applicable Tax Services
• Track relevant proceeding and Services
• Submit applicable forms
• Manage tax related interactions online

 6. Why Filing an ITR Can be Useful ?

1. Claim Refund - Taxpayer can claim refund by filing their ITR on or before due date as per sec section 263(1) of the Income tax act 2025 .
2. Visa Application
3. Income proof

7. Who is an Assessee Under the Income-Tax Act ?

An assessee is person who is liable to pay tax or any sum of money as per the provision of the Income Tax Act, 1961.

Section 2(7) of the Income Tax Act defines an assessee as anyone who is required to pay taxes on any income earned or losses incurred in an assessment year. They can also be referred to as every person for whom:

• Is there any action being taken under the act to evaluate his income?
• The income of another person for which he is taxes.
• Any loss incurred by him or any other person or persons entitled to a tax refund.

8. Who is a person as per the  income tax act, 1961

          Following are the categories of persons defined under the Income Tax Act

• Individual
• Hindu Undivided Family (HUF)
• Partnership Firm
• Company
• Association of person (AOP) or Body of Individual (BOI)
• Local authority
• Artificial Juridical body (not covered under any of the above-mentioned category)

 9. Categories of assessee

         There can be four categories of assessee: -

• Normal Assessee

An Individual who is liable to pay tax for the income earned during the financial year is known as Normal Assessee.

• Representative Assessee

Where a person is liable to pay taxes on behalf of third party is know as Representative Assessee, For eg tax of minor is to be paid by his/ her parent that parent is known as representative assessee.

• Deemed Assessee

Any individual can be assigned the responsibility for paying taxes by the legal authority, such individual are called deemed assessee. For example, legal heir of a deceased person, guarding of a lunatic etc.

• Assessee-in-default

Assessee in default is person who was required to pay the income tax as per the requirements of Income Tax Act, 1961 but has to failed to fulfil his obligations.

If a person sells his house and earns capital gain on such sale of house and fails to pay such tax then such person will be called as Assesse-in-default.

Frequently Asked Question

1. Is Aadhaar Mandatory For E-filing Registration ?

 Yes, Aadhar is mandatory for individuals registration and active mob no should be linked with that provided aadhaar card.

2. Is there any Govt fees for E-Filing Registration ?

 No, There is no govt fees for registration on E-Filing Income Tax portal.

3. What is basic exemption limit ?

    Basic Exemption limit means the maximum amount of total income on which an individual does not have to pay Income Tax.

Following table shows what is the basic exemption limit as per regime