CA Intermediate · Taxation · Basic Concepts
Neha Enterprises, a partnership firm, paid Rs 1,20,000 in tax year 2026-27 under a demand notice and states that it also received Rs 15,000 as interest on a tax refund. For understanding the term 'person' under the 2025 Act, which of the following is correctly classified as a person?
A firm, a company and an association of persons are all persons, whether or not incorporated. The definition also includes individuals, HUFs, local authorities and artificial juridical persons, so the other statements wrongly exclude some of these categories.
- AA Hindu undivided family, but not a firm
- BA firm, a company and an association of persons, whether or not incorporatedCorrect
- CA local authority only if it is incorporated
- DA body of individuals, but not an artificial juridical person
Explanation
The definition of person includes an individual, HUF, company, firm, association of persons or body of individuals (whether incorporated or not), local authority, and every artificial juridical person. Hence a firm, company and AOP are all persons. HUF is included, so option A is wrong. Local authorities are persons regardless of incorporation, and artificial juridical persons are covered too.
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