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CS Professional · Internal and Forensic Audit · Cyber Forensics

An internal auditor reviewing Veda Retail Pvt Ltd, a sole-proprietorship-style business run by a family firm engaged in commercial activity, asks whether it counts as a 'body corporate' for data protection compensation. Under the explanation to Section 43A of the IT Act, 2000, which is correct?

A body corporate under Section 43A means any company and also includes a firm, sole proprietorship or other association of individuals engaged in commercial or professional activities. Hence a family-run commercial business falls within the data protection compensation duty.

  1. AOnly a company registered under the Companies Act qualifies
  2. BOnly listed companies qualify
  3. COnly companies with a turnover above a prescribed limit qualify
  4. DA company, and also a firm, sole proprietorship or other association of individuals engaged in commercial or professional activities, qualifiesCorrect

Explanation

The explanation defines body corporate as any company and includes a firm, sole proprietorship or other association of individuals engaged in commercial or professional activities. So the audit scope covers such entities. The other options add conditions not found in the text.

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