Meaning of Person: Section 2(31) Income Tax

Normally a ‘Person’ refers to an ‘Individual’, however under Income Tax, the person has broader meaning and coverage. For the purpose of charging Income-tax, the term ‘person’ has been defined under Section 2(31) of the Income Tax Act, 1961 to include Individual, Hindu Undivided Families [HUFs], Association of Persons [AOPs], Body of individuals [BOIs], Firms, LLPs, Companies, Local authority and any artificial juridical person.

The term ‘person’ as defined under the Income-tax Act covers in its ambit natural as well as artificial persons, i.e. apart from a natural person/ individual, any sort of artificial entity will also be liable to pay Income-tax.

Meaning of Person: Section 2(31) Income Tax

It may be noted that “assessee” under the Income Tax Act, 1961 is a person by whom any tax/ other dues are payable under that Act, i.e. income-tax is to be paid by a ‘person’. Therefore deciding the status of ‘person’ under the Income Tax Act is all the more important, as there are different set of tax rules/ rates which are applicable to different type of persons.

As per Section 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.


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    • Ashwani Mehta
      • Darshan Bhanushali
    • Pradeep Bhatt
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