Question

According to the Income Tax Act, 1961, an Assessee in default is a person who:

• A. Is deemed to be an assessee for some other person
• B. A person who has failed to fulfill statutory obligations as per the Income Tax Act
• C. Is the person liable to pay income tax during an assessment year
• D. Is the person by whom any tax or other sum of money is payable under this Act

Hint:

Regular compliance with tax rules avoids penalties and ensures smooth operations

Answer 1

The Correct Option is B

Under Section 201 of the Income Tax Act, an ”Assessee in Default” refers to a person or entity who fails to deduct or deposit tax at the source or does not comply with other statutory requirements. For example, if an employer does not deduct TDS on salaries or fails to deposit the same with the government, they are deemed an assessee in default.