CA Intermediate · Taxation · Basic Concepts
Under the Income-tax Act, 2025, which of the following is correctly classified as a 'person'?
An individual, a company and a local authority are all included in the definition of person under the 2025 Act. The definition also covers HUFs, firms, associations of persons, bodies of individuals and artificial juridical persons, and does not depend on residence.
- AOnly an individual and a Hindu undivided family
- BAn individual, a company and a local authorityCorrect
- COnly an individual, a company and a firm, but not an artificial juridical person
- DA company only if it is a resident in India
Explanation
The definition of person is wide and includes an individual, HUF, company, firm, association of persons or body of individuals, local authority, and every artificial juridical person. So an individual, a company and a local authority are all persons. The other options wrongly restrict the definition.
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