Person [Section 2(31)]

According to Sec. 2(31) the term person includes the following:

• An Individual:  A natural person or a human being is an individual.  An individual may be male, female or a lunatic.
• A Hindu Undivided Family (HUF): A family consists of all the members of the lineally descended from a common ancestor including their wives and unmarried daughters.
• A Company: A company is defined as an artificial person created by law with perpetual succession, a common seal and common stock divided into shares with limited liability.
• A Firm: A firm is a partnership which is defined by the Partnership Act as a “relationship between persons who have agreed to share the profits of a business carried on by all or any of them acting for all”.  These persons are called partners and collectively they are called “Firm”.  In the context of Income Tax Act, the term ‘partner’ also includes a minor admitted to the benefits of partnership.  The definition of Partnership Act holds good for the income tax also.
• An Association of Persons (AOP): If two or more persons associate themselves for managing a property for the purpose of producing income or when there is a combination of persons formed for the promotion of a join enterprise, they are said to have formed an ‘Association of Persons’ provided that it is not a Hindu Undivided Family, firm, company or a local authority.  The objective of the association must be for the purpose of earning income.
• Body of Individuals (BOI): BOI means a conglomeration of individuals who carry on some activity with the objective of earning some income.  It would consist of individuals alone.  Entities like companies or firms cannot be members of a body of individuals (BOI).  Income tax shall not be payable by an assessee in respect of the respect of the receipt of share of income by him from BOI on which tax has already been paid by such BOI.
  Distinction between AOP and BOI:
  
  • A BOI has to connect of individual only.
    An AOP may consist of non-individuals also.  If two or more persons (like firm, company, HUF, individuals etc) join together, it is called an AOP.  But if only individuals join together, it is called a BOI.
  • An AOP may be formed by the voluntarily getting together for a common design or in combination, will be engaged in income producing activities, whereas a BOI may or may not have such common design or will.
• A Local Authority:  Local Authority includes municipality, Municipal Corporation, district board, panchayat, cantonment board, port trust, etc.
• Artificial Juridical Person: Any public corporation brought into existence by a Special Act of Legislature like Life Insurance Corporation, a University etc., private religious trusts, an idol or a deity fall under this category.