Section 2(7) → Section 2(12)
Definition of Assessee
Quick Answer
Section 2(7) of the Income Tax Act, 1961 (Definition of Assessee) corresponds to Section 2(12) of the Income-tax Act, 2025, effective 1st April 2026. Status: Retained.
What changed for Section 2(7)
The starting point is Section 2(7) of the Income Tax Act, 1961 — definition of assessee. Defines a person by whom any tax or any other sum of money is payable under the Act.
The new code maps this to Section 2(12): the provision is retained and renumbered as Section 2(12) of the Income-tax Act, 2025, applying from 1st April 2026. Retained. Broadened to explicitly include persons liable for new digital asset penalties.
On the ground, changes to Section 2(7) carry a Low impact. Foundational definition.
Sec 2(7)
Provision Summary
Defines a person by whom any tax or any other sum of money is payable under the Act.
Sec 2(12)
Provision Summary
Retained. Broadened to explicitly include persons liable for new digital asset penalties.
Key Changes & Highlights
- Includes representatives of non-resident digital entities.
Frequently Asked Questions
What does Section 2(7) of the Income Tax Act 1961 deal with?
Section 2(7) of the Income Tax Act, 1961 covers definition of assessee. Defines a person by whom any tax or any other sum of money is payable under the Act.
Where does Section 2(7) of the ITA 1961 go under the Income-tax Act, 2025?
Section 2(7) of the Income Tax Act, 1961 maps to Section 2(12) of the Income-tax Act, 2025, effective 1st April 2026 (status: Retained). Retained. Broadened to explicitly include persons liable for new digital asset penalties.
Why does the change to Section 2(7) matter for taxpayers?
The transition impact for Section 2(7) is rated Low. Foundational definition.
What are the key changes to Section 2(7) under the Income-tax Act, 2025?
Includes representatives of non-resident digital entities. These points are specific to Section 2(7) (Definition of Assessee).
Disclaimer: This mapping of Section 2(7) (Definition of Assessee) to Section 2(12) of the Income-tax Act, 2025 is for educational and reference purposes only, based on publicly available drafts and circulars. As Section 2(7) is currently marked Retained, always confirm its treatment with a qualified Chartered Accountant before filing or making compliance decisions.
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