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Microlesson · 5-min read

Person — Definition under Sec 2(31)

# Person under Sec 2(31)

Under the Income-tax Act, 'Person' is defined inclusively to cover seven categories:

1. Individual — a natural human being.

2. Hindu Undivided Family (HUF)

3. Company

4. Firm / LLP

5. Association of Persons (AOP) or Body of Individuals (BOI), whether incorporated or not.

6. Local Authority

7. Every Artificial Juridical Person not falling within any of the above categories.

## Why this matters

  • Income tax is levied on every Person.
  • Hence understanding 'who is a Person' is the starting point for assessing tax liability.
  • HUF, AOP, BOI, Local Authority etc. are treated as separate taxable entities, distinct from their members.

## Examples of Each Category

CategoryExample
IndividualMr. A, Mrs. B (incl. minor, unsound mind)
HUFFamily of Mr. R consisting of him, wife, children
CompanyReliance Ltd., Infosys Ltd.
Firm / LLPM/s ABC & Co., XYZ LLP
AOP / BOIJoint venture of two companies without partnership
Local AuthorityMunicipal Corporation, Panchayat
Artificial Juridical PersonDeities, idols, statutory bodies, universities

Worked example

### Example 1

Example: A municipal corporation collects taxes and undertakes civic projects. It is a Local Authority and a 'Person' under the Act.

### Example 2

Example: A registered Hindu deity (e.g., a temple trust) receives donations — assessed as an Artificial Juridical Person.

### Example 3

Example: Two CAs form a partnership firm — the Firm is a separate Person from each partner.

⚠️ Common exam mistakes

  • Forgetting that LLP is included in 'Firm' for IT Act purposes.
  • Not treating HUF, AOP, BOI as separate persons distinct from members.
  • Confusing 'Artificial Juridical Person' with 'Company' — companies have a separate category.
  • Excluding minors/unsound persons from 'Individual' — they ARE individuals; assessment is via guardian.
Bare-Act text Section 2(31) · Income-tax Act, 1961 · click to expand
Sec 2(31) 'Person' includes — (i) an individual, (ii) a Hindu undivided family, (iii) a company, (iv) a firm, (v) an association of persons or a body of individuals, whether incorporated or not, (vi) a local authority, and (vii) every artificial juridical person, not falling within any of the preceding sub-clauses.
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