# Definition of 'Assessee' — Section 2(7)
While 'person' is a wide concept, the law collects tax from a sub-set of persons called the 'assessee'.
## Working definition
An assessee is any person by whom any tax, interest or penalty is payable under the Income-tax Act, 1961.
In other words, the moment a person comes within the machinery of the Act — whether to pay tax, to claim a refund, or to face a proceeding — he becomes an assessee.
## Person vs Assessee
| Person (Sec 2(31)) | Assessee (Sec 2(7)) |
|---|---|
| Wider concept | Narrower concept |
| Every assessee is a person | Not every person is an assessee |
| Mere existence is enough | Liability under the Act is required |
## Examples of who becomes an 'assessee'
- A salaried individual whose tax has been deducted at source.
- A company that has to pay self-assessment tax.
- A trust against which a penalty has been levied.
- A person whose income, even if below the basic exemption limit, is under assessment for any reason (e.g., refund claim).
## Why it matters
Many provisions of the Act (notice, demand, appeal, penalty, refund) use the word 'assessee' — only a person fitting this definition can invoke or face them.