Type of person
Querist : Anonymous
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Expert : Anonymous
Querist : Anonymous
### 1. **Legal Personhood under Income Tax Act, 1961:**
The Income Tax Act uses the term **“person”** broadly. According to Section 2(31), **“person” includes:**
* An individual,
* A Hindu Undivided Family (HUF),
* A company,
* A firm,
* An Association of Persons (AOP) or Body of Individuals (BOI),
* A local authority,
* And every artificial juridical person not falling within any of the above.
### 2. **Where does a Trust fall?**
* A **Trust** is **not explicitly defined** as a separate category under the Act.
* It is considered an **“Artificial Juridical Person”** — a legal entity created by law, not a natural person.
* In practical taxation terms, a trust is treated as either:
* An **Association of Persons (AOP)** if the beneficiaries are not clearly defined or the trust operates collectively.
* Or an independent **Artificial Juridical Person** (similar to a company), especially if it has a distinct legal existence with its own PAN and files returns separately.
### 3. **Why two views?**
* Some experts say a trust is an **AOP** because multiple beneficiaries are involved, and the trust income is assessed in their hands.
* Others say it is an **Artificial Juridical Person**, as it can hold assets, sue or be sued, and file income tax returns independently.
### 4. **Summary:**
* A trust is a **“person” under Income Tax law** but not an individual or company.
* It is an **Artificial Juridical Person** or may be treated as an **AOP**, depending on facts.
* The distinction matters mainly for tax assessment purposes.
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