In the Income Tax Act of 1961, the term “person” is defined in Section 2(31) as follows:
“Person” includes –
(i) an individual, (ii) a Hindu Undivided Family (HUF), (iii) a company, (iv) a firm, (v) an association of persons (AOP) or a body of individuals (BOI), (vi) a local authority, and (vii) every artificial juridical person, not falling within any of the preceding sub-clauses.
This definition is quite broad and covers a wide range of entities that may be subject to income tax in India. Here are some examples of how this definition may be applied in the latest context:
- An individual: This is a natural person, such as an employee, a self-employed professional, or a retired person. They are taxed on their income from various sources, such as salary, business, capital gains, or interest.
- A Hindu Undivided Family (HUF): This is a family unit that consists of several members who are all lineal descendants of a common ancestor. An HUF is taxed separately from its individual members, and is treated as a separate entity for tax purposes.
- A company: This is a legal entity that is registered under the Companies Act, 2013. A company is taxed on its profits and gains, and may also be subject to other taxes, such as dividend distribution tax or minimum alternate tax.
- A firm: This is a partnership firm or a limited liability partnership (LLP). A firm is taxed on its profits and gains, which are divided among its partners or members, and is treated as a separate entity for tax purposes.
- An association of persons (AOP) or a body of individuals (BOI): These are groups of individuals who come together for a common purpose, such as a club, a society, or a trust. AOPs and BOIs are taxed separately from their individual members, and are treated as separate entities for tax purposes.
- A local authority: This includes any municipal corporation, municipality, or panchayat, that is established by law and performs certain functions for the benefit of the local community. A local authority is taxed on its income from various sources, such as property tax or user charges.
- Every artificial juridical person: This includes entities that are not covered by any of the preceding sub-clauses, such as a co-operative society, a university, or a religious institution. These entities are treated as separate entities for tax purposes and are taxed on their income from various sources.
In the Income Tax Act of 1961, the term “person” is defined in Section 2(31) as follows:
“Person” includes –
(i) an individual, (ii) a Hindu Undivided Family (HUF), (iii) a company, (iv) a firm, (v) an association of persons (AOP) or a body of individuals (BOI), (vi) a local authority, and (vii) every artificial juridical person, not falling within any of the preceding sub-clauses.
This definition is quite broad and covers a wide range of entities that may be subject to income tax in India. Here are some examples of how this definition may be applied in the latest context:
DenverSingh