# Other categories of "Person" under Sec 2(31)
## Firm / LLP
"Firm" means a partnership firm as defined by the Indian Partnership Act. LLPs are also covered under this category for income tax purposes.
## Association of Persons (AOP)
When persons combine together for promotion of their joint enterprise, and they do not constitute a partnership firm in law, they are called an AOP.
Essentials for AOP formation:
- Persons must join for a common purpose or action, AND
- Their object must be to produce income.
Caution: It is not enough that they merely receive income jointly — there must be a joint enterprise aimed at producing income.
## Body of Individuals (BOI)
A BOI denotes a status of persons (executors or trustees) who merely receive income jointly and who may be assessable in like manner and to the same extent as the beneficiaries individually.
Co-executors or co-trustees are assessable as a BOI because their title and interest are indivisible.
### AOP vs BOI — the key distinction
| Aspect | AOP | BOI |
|---|---|---|
| Composition | Can include any persons (individuals + companies + firms etc.) | Only individuals |
| Purpose | Joint enterprise to produce income | Merely receive income jointly |
| Object | Common purpose or action | No common purpose required |
## Company
Under the Income Tax Act, "Company" has a much wider meaning than under the Companies Act, 2013. It means:
1. An Indian Company defined under Section 2(26); OR
2. Any body corporate incorporated by or under the laws of a country outside India (i.e., any Foreign Company); OR
3. Any association, institution or body assessed as a company under the Income Tax Act, 1922 or under the present Act on or before 1.4.1970; OR
4. Any institution, association or body — whether incorporated or not, Indian or non-Indian — declared as a company by CBDT by a general or special order for such AYs as it may specify.
## Local Authority
Means a municipal committee, district board, body of port commissioners or other authority legally entitled to — or entrusted by the Government with — the control or management of a municipal or local fund.
Taxability rule (very important):
| Income head | Taxable? |
|---|---|
| Business income | Taxable |
| Income from supply of water, electricity, or any other service | NOT taxable |
## Artificial Juridical Person (AJP)
AJPs are not natural persons but are separate entities in the eyes of law. This is a residual category that covers all artificial persons with a juristic personality not falling under any other category.
Examples: Deities (Bhagwaan ji), Bar Council, Universities, Colleges.