Income tax is to be paid by every person. The term ‘person’ as defined under the section2 (3) of the Income-tax Act and covers the natural as well as the artificial persons under its ambit.
For the purposes of charging the Income-tax, the term ‘person’ includes the following: –
- Hindu Undivided Families [HUFs]
- Association of Persons [AOPs]
- Body of individuals [BOIs]
- LLPs, Companies
- Local authority and
- Any artificial juridical persons are not covered under any of the above.
Therefore, by the definition of the term ‘person’, it can be observed that apart from a natural person, i.e., an individual, any type of artificial entity will also be liable to pay the Income-tax.