Definition of Tax : The term Taxation or Tax is comes from Latin word "Taxatio" which means "Payable Quantam

an Estimate". Tax is a compulsory levy upon a person. According to Taylor, taxes are the compulsory payments to the Govt. without expectation of direct benefit to the tax payer. So we can Say that, tax is an amount of money that compulsory pay to the Govt. It is the expense of the assesses. On the other hand it is the revenue of the Govt.In every country about 80% of total Govt. revenue comes from Tax. Characteristics of Tax : i) It is a compulsory levy under taxing act. ii) Tax payer can't get benefited direct or quid qua pro (proportionally get benefited) service for payment of tax iii) It is a price that pay to the Govt. for living in a civilized society iv) It must be a fixed rate v) It is the way for utility producing vi) It helps to develop the economy Principles / Canons of taxation : Adam Smith gave four principles of taxation which is called "Canons of Taxation" and those are following : i) Canon of Equality ii) Canon of Certainty iii) Canon of Convenience iv) Canon of Economy Some other writers prescribed some other principles/ Canons which are below : v) Canon of Productivity vi) Canon of Diversity vii) Canon of Simplicity viii) Canon of Flexibility ix) Canon of Social objectives x) Canon of Functional Efficiency Classification of Tax : Tax can be classified into different types based on different angles, which are showing below :

Tax
On the Basis of Incidence
On the Basis of Progression

On the Basis of Base

Direct Tax

Indirect Tax

Progressive

Proportional

Regressive

Single Tax

Multiple Taxes

Definition of Assessee : Generally tax payer called assessee. Assessee is the person on whom tax is levied to pay to the Govt. According to income tax ordinance 1984, under section 2(7) - Assessee means a person by whom any tax or other sum of money is payable under this ordinance and includes (a) Person against whom income tax case. (b) Person who is required to file income tax return. (c) Person who desires to be assessed and submit his/her income tax return. (d) Person who is deemed to be an assessee. Physical Status of Assessee : There are seven types of physical status of assessee that are followingi) An individual (Ind.) ii) A firm (partnership) iii) An association of persons (AOP) iv) A Hindu Undivided Family (HUF) v) A Local Authority (LA) vi) A Company (Co.) vii) Other artificial person as defined in ITO Assessment Year : Assessment year means Tax year. According to section 2(9) of IT ordinance,1984 -assessment year means that period of twelve months commencing on the first day of July every year. Income tax Authorities : The income tax authorities may be classified in the following groups :

Income Tax Authorities

Judicial Authorities
Appellate Tribunal
Appellate Additional Commissioner of taxes

Appellate joint Commissioner Commissioner of Taxes

Administrative Authorities
NBR
Direct General

Commissioner of Taxes Additional Commissioner of Taxes Joint Commissioner of Taxes Deputy Commissioner of taxes Tax recovery officer Assistant commissioner of Tax Extra assistant commissioner of Tax Inspector of Taxes