# Assessee, Assessment & the Seven Categories of 'Person'
## Assessee [Section 2(7)]
Any person liable to pay tax or any other sum under the Act. It includes:
- Every person against whom assessment proceedings have been initiated — for their own income, another's income, losses, or refunds.
- Deemed Assessees — persons treated as assessees under specific provisions (e.g. legal representative, agent).
- Assessee in Default — those who fail to meet an obligation, such as not deducting or not depositing TDS.
> Key relationship: Every assessee is a person, but not every person is an assessee (a person becomes an assessee only when liability or proceedings arise).
## Assessment [Section 2(8)]
The procedure to determine an assessee's income and tax — covers both the normal assessment and the reassessment of previously assessed income.
## Definition of 'Person' [Section 2(31)] — the seven categories
| # | Category | Quick note |
|---|---|---|
| 1 | Individual | Natural persons (male/female), including minors and persons of unsound mind — assessed via guardian/representative |
| 2 | HUF | Hindu Undivided Family (see detail below) |
| 3 | Company | Wider than Companies Act meaning |
| 4 | Firm | Includes partnerships and LLPs; minors admitted to benefits count too |
| 5 | AOP / BOI | Association of Persons / Body of Individuals |
| 6 | Local Authority | Municipal boards, district committees, etc. |
| 7 | Artificial Juridical Person | Non-human legal entities — universities, Bar Councils, deities |
## HUF — deeper notes
- A distinct taxable entity, even though HUF is not defined in the Act.
- Consists of all male descendants of a common ancestor, their wives, and unmarried daughters.
- Managed by the Karta (eldest member); coparceners (members within 4 generations) have rights in family property and can demand partition.
- Daughters as coparceners: Since the 2005 amendment, daughters are coparceners by birth with equal rights. But a wife or daughter-in-law does not get coparcenary rights.
- Formation by status, not agreement. Post-2005, even a single coparcener (male or female) can form an HUF.
- Two schools of Hindu law:
- Dayabhaga (West Bengal, Assam) — rights arise only on the death of the head.
- Mitakshara (rest of India) — rights arise by birth, so each member has a share even while ancestors are alive.
## Artificial Juridical Person
Non-human entities with legal standing (universities, Bar Councils, deities). They are not natural persons and don't fit any other category — hence the residual head.