TAX DEFINITION 1. PERSON [section 2(31)]: the income tax act, 1961 levies tax on a person.

Under section 2(31), person includes: i. An individual ii. A Hindu undivided family iii. A Company iv. A Firm v. An association of persons or body of individuals, whether incorporated or not vi. A local authority vii. Every artificial juridical person, not falling within any of the preceding sub-class. 2. Assessee [section 2(7)]: Assessee means a person by whom any tax or any other sum of money is payable under the Income Tax Act, 1961. The term assessee also includesi. Every person in respect of whom any proceedings under the act has been taken ii. Every person who is deemed to be an assessee under the act. iii. Every person who is deemed to be an assessee in default under the act. 3. Assessment [section 2(8)]: Assessment is the process of determiningi. The income or the loss of an assessee ii. The tax liability on the income so determined and iii. The tax payable by or refund due to the assessee Thus, there are three stages in an assessment: i. Computation of total income (or total loss) ii. Determining the total tax liability on the total income iii. Determination of tax payable or amount refundable 4. Income [section 2(24)]: income tax is a tax on income, but the act does not give a positive, clear cut or an exhaustive definition of the term income. According to the section 2(24), income includes: i. Profits and gains ii. Dividend, iii. The value of any perquisite or profit in lieu of salary taxable under the head salaries iv. Profit on sale of an import license. v. Cash assistance received or receivable by any person against exports under any government scheme taxable. vi. The profits and gains of any business of banking carried on by a co-operative society with its members etc.

5. Business [section 2(24)]: Business includes any service, any trade, commerce or manufacture or any adventure or concern in the nature of service, trade, commerce or manufacture, whether or not the engagement in such service, trade, commerce, manufacture, adventure or concern is with the motive to make gain or profit accrues from such service, trade, commerce, manufacture, adventure or concern. 6. Goods [section2 (12)]: goods means every kind of movable property not being newspapers, auctionable claim, money, stock, shares, securities or lottery tickets and includes livestock, growing crop, grass and trees and plants including the produce thereof including property in such goods attached to or forming part of the land which are agreed to be severed before sale or under the contract of sale. 7. Dealer [section 2(8)]: dealer means any person who, for the purposes of or consequential to his engagement in or, in connection with or incidental to or in the course of, his business buys or sells, goods in the state whether for commission, remuneration or otherwise includes: i. ii. iii. iv. A factor, broker, commission agent, del-credere agent or any other mercantile agent, by whatever name called. An auctioneer who sells or auctions goods whether acting as an agent or otherwise. A non resident dealer Any society, club or other association of persons.

8. Importer [section 2(13)]: importer means a dealer who brings any goods into the state or to whom any goods are dispatched from any place outside the state. Thusi. Importer means a dealer who brings any goods into the state ii. To whom any goods are dispatched from any place outside the state iii. Importer means person bringing goods into state of Maharashtra.