Definition of direct taxes: 1. Person [section2 (31)]: The Income Tax Act, 19 1 !e"ies tax on a #erson.

$nder %ection 2(31), #erson inc!&des: i. An indi"id&a! ii. A 'ind& &ndi"ided fami!( iii. A )om#an( i". A firm ". An Association of #ersons or *od( of indi"id&a!s +hether incor#orated or not "i. A !oca! a&thorit( and "ii. ,"er( artificia! -&ridica! #erson, not fa!!in. +ithin an( of the #recedin. s&* / c!asses. 2. Assessment [section 2(0)]: Assessment is the #rocess of determinin.: i. The income or the !oss of an assessee ii. The tax !ia*i!it( on the income so determined iii. The tax #a(a*!e *( or ref&nd d&e to the assessee. Th&s, there are three sta.es in an assessment: a. )om#&tation of tota! income *. Determinin. the tota! tax !ia*i!it( on the tota! income c. Determination of tax #a(a*!e on amo&nt ref&nda*!e. 3. Assessment 1ear [section 2(9)]: Assessment (ear means the #eriod of 12 months commencin. on the 1st da( of A#ri! e"er( (ear. Th&s, assessment (ear 221232211 commences on 1st A#ri!, 2212 and ends on 31st 4arch, 2211. This definition has to *e st&died +ith the definition of 5Pre"io&s (ear6 *eca&se income tax is char.ed for e"er( assessment (ear on the tota! income of the #re"io&s (ear. 7. Pre"io&s 1ear [section 2(37) and 3]: The definition can *e c!assified into t+o #arts: 8orma!!(, the #re"io&s (ear means the financia! (ear #recedin. the assessment (ear e... for assessment (ear 2212311, the #re"io&s (ear +i!! *e the financia! (ear 2229312 i.e. the (ear *e.innin. from 13732229 and endin. on 313332212. In the case of a ne+!( set &# *&siness the #re"io&s (ear +i!! *e the #eriod *e.innin. from the commencement of that *&siness, ti!! the next fo!!o+in. 31st 4arch.

Definition of indirect taxes: 1. 9&siness [section 2(7)]: 9&siness inc!&des an( ser"ice, an( trade, commerce or man&fact&re, or an( ad"ent&re or concern in the nat&re of ser"ice, trade, commerce or man&fact&re, +hether or not the en.a.ement in s&ch ser"ice, trade, commerce, man&fact&re, ad"ent&re or concern is +ith the moti"e to ma:e .ain or #rofit and +hether or not an( .ain or #rofit accr&es from s&ch ser"ice, trade, commerce, man&fact&re, ad"ent&re or concern. 2. Dea!er [section 2(0)]: Dea!er means an( #erson +ho, for the #&r#oses of or conse;&entia! to his en.a.ement in or, in connection +ith or incidenta! to or in the co&rse of, his *&siness *&(s or se!!s, .oods in the state +hether for commission, rem&neration or other+ise and inc!&des: A factor, *ro:er, commission a.ent or an( other mercanti!e a.ent An a&ctioneer +ho se!!s or a&ctions .oods +hether actin. as an a.ent or other+ise A non resident dea!er An( societ(, c!&* or other association of #ersons 3. <oods [section 2(12)]: <oods means e"er( :ind of mo"a*!e #ro#ert( not *ein. ne+s#a#ers, a&ctiona*!e c!aim, mone(, stoc:s, shares, sec&rities or !otter( tic:ets and inc!&des !i"estoc:=s, .ro+in. cro#, .rass and tress and #!ants inc!&din. the #rod&ce thereof inc!&din. #ro#ert( in s&ch .oods attached to or formin. #art of the !and +hich are a.reed to *e ser"ed *efore sa!e or &nder the contract of sa!e. 7. %a!e [section 2(27)]: %a!e means a sa!e of .oods made +ithin the state for cash or deferred #a(ment or other "a!&a*!e consideration, *&t does not inc!&de a mort.a.e, h(#othecation char.e or #!ed.e and the +ord >se!!=, >*&(= and >#&rchase= +ith a!! their .rammatica! "ariation, and co.nate ex#ressions, sha!! *e constr&cted accordin.!(.