Under the Income Tax Act, 1961 in India, the term “person” is defined comprehensively to include various entities. According to Section 2(31) of the Income Tax Act, a “person” includes:
| An Individual | A single human being. |
| A Hindu Undivided Family (HUF) | A family unit that is recognized by Hindu law. |
| A Company | A corporate entity registered under the Companies Act. |
| A Firm | A partnership entity that operates as per the Indian Partnership Act or Limited Liability Partnership Act. |
| An Association of Persons (AOP) or Body of Individuals (BOI) | A group of individuals or entities working together with a common purpose even without registration. |
| A Local Authority | Entities such as municipalities, panchayats, etc., that manage local governance. |
| Every Artificial Juridical Person | Any entity not covered above but is recognized by law as having legal rights and duties (e.g., a trust). |
Points to Ponder
- An Individual means only a natural person, i.e, a human being.
- Individual includes a minor and a person with unsound mind
- A HUF consists of all persons lineally descended from a common ancestor. It includes their wives and unmarried daughters.