CA Intermediate · Taxation · Basic Concepts
Which of the following is a correct statement about the characteristics of a person under the Income-tax Act, 2025 for the tax year 2026-27?
A local authority is a person under the Income-tax Act. The definition of person is wide and covers individuals, HUFs, companies, firms, associations of persons, bodies of individuals, local authorities and artificial juridical persons, so firms and HUFs are also persons.
- AA firm is not a person as it is not an individual
- BA local authority is a personCorrect
- COnly natural persons are persons
- DA HUF is not a person but its karta is
Explanation
The definition of person includes an individual, HUF, company, firm, association of persons or body of individuals, local authority and every artificial juridical person. Hence a local authority is a person. The other options wrongly restrict the definition.
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