Who is supposed to pay the Income-Tax?

 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: –

  1. Individual
  2. Hindu Undivided Families [HUFs]
  3. Association of Persons [AOPs]
  4. Body of individuals [BOIs]
  5. Firms
  6. LLPs, Companies
  7. Local authority and
  8. 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.

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