Person – Meaning – S.2(31) Income Tax

Definition of ‘Person’ – Income Tax

As per S.2(31) of Income Tax Act, 1961, unless the context otherwise requires, the term “person” includes:

(i)  an individual,

(ii)  a Hindu undivided family,

(iii)  a company,

(iv)  a firm,

(v)  an association of persons or a body of individuals, whether incorporated or not,

(vi)  a local authority, and

(vii) every artificial juridical person, not falling within any of the preceding sub-clauses.

Explanation:

For the purposes of this clause, an association of persons or a body of individuals or a local authority or an artificial juridical person shall be deemed to be a person, whether or not such person or body or authority or juridical person was formed or established or incorporated with the object of deriving income, profits or gains.


Income-tax is to be paid by every person. The term ‘person’ as defined under the Income-tax Act covers in its ambit natural as well as artificial persons. For the purpose of charging Income-tax, the term ‘person’ includes Individual, Hindu Undivided Families [HUFs], Association of Persons [AOPs], Body of individuals [BOIs], Firms, LLPs, Companies, Local authority and any artificial juridical person not covered under any of the above.

Thus, from the definition of the term ‘person’ it can be observed that, apart from a natural person, i.e., an individual, any sort of artificial entity will also be liable to pay Income-tax.

13 Comments

  1. Loyd Pinto
    • Ashwani Mehta
      • Darshan Bhanushali
    • Pradeep Bhatt
  2. Karthik
    • mounika bhargavi
    • Pragya
      • DiLip
    • Achyuth
  3. Manish Mulchandani
  4. Anuj
  5. Bhavani
  6. Ajay Kumar Goel

Get ‘CA Club Updates’ Newsletter via Daily Email

Subscribe for our Newsletter ‘CA Club Updates’ delivered thru Google Feedburner Emails and join our community of 6000 plus subscribers. To join, please click on the ‘SUBSCRIBE’ link below:

SUBSCRIBE

Upon clicking the link, a pop-up window will open. Please fill up your email id and verification code therein. After that check your email and click the confirmation link sent by Feedburner Email subscription.

This one time process is to ensure that you don’t get emails without your own confirmation, i.e. someone else can’t register your email here. Besides, each Newsletter will include an ‘Unsubscribe’ link to maintain your freedom to discontinue getting emails anytime.