Definition of persons under IT Act 1961

Taxblock , Last updated: 25 September 2021  
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According to section 2(31) of the Income-tax Act a 'person' includes:

  • Individuals
  • Partnership Firms
  • HUF
  • Company
  • Association of person or body of individuals whether incorporated or not
  • Local authorities
  • Any other artificial judicial person not falling under any of the above sub sections

An assessee is a person who is liable to pay any tax or any other dues mentioned under the act.

However, from the above section, it can be noted that a person not only includes natural person but also an artificial judicial person.

Definition of persons under IT Act 1961

Types of persons mentioned under the sections are defined as below

1. Individuals: Individuals refers to natural human beings whether

2. Male or female or transgender

3. Major or minor

4. Resident or non-resident

5. Partnership Firm: A partnership is a contractual relationship between two or more individuals that have agreed to carry on a business represented by all or any one of them acting on behalf of all with an objective to share the profits obtained from the business.  LLP is considered or taxed as a firm under the Income-tax Act, 1961.

6. HUF: Hindu Undivided Family (HUF) is a family-owned business covered as per the rules of Hindu laws that consists of all persons lineally descended from the same family having its head as Karta and members as coparceners. Jain and Sikh families are also considered as HUF under this act.

 

7. Company: Company is a legal judicial entity that is formed under the Companies Act, 2013 or any other previous act. Companies include

  • Any Indian company
  • Foreign company
  • Parent, Associate or subsidiary company
  • Statutory company
  • Government company
  • Any other sort of company
 

8. Association of persons or body of Individuals: Association of persons means a group of people who have come together for achieving a common goal by working in the same direction. Members of AOP can be natural or judicial persons.

9. Local authorities: Local authorities are an organization that is officially responsible for public services formed for providing services in a particular area.

Authored by Adv Shivam Kumar       

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