Tax Glossary Definition
An assessee in default is a person or entity who fails to deduct, collect, or deposit tax as required under the provisions of the Income Tax Act. Such failure makes the person liable for the unpaid tax amount, along with interest, penalty, and possible prosecution as per law.
Example: An employer who deducts TDS from employees’ salaries but does not deposit it with the government is treated as an assessee in default.
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