Type of person

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Querist : Anonymous

Querist : Anonymous (Querist)

01 May 2017 What type of person is trust

CA AnKiT BoHrA (AB)

CA AnKiT BoHrA (AB) (Expert)
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01 May 2017 Trust is a fictional person.......................

Guest

Guest (Expert)

01 May 2017 association of person.

Expert : Anonymous

Expert : Anonymous (Expert)

02 May 2017 Dear the term person does have any type defined by income tax act 1961. the queation is void.

Querist : Anonymous

Querist : Anonymous (Querist)

06 May 2017 Why the question is void could u explain me and few expert are saying it is aop so why two views

Asha Kanta Sharma

Asha Kanta Sharma (Expert)
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02 August 2025 Great question! Here's some clarity on the **"type of person"** for a trust under Income Tax law:

### 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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If you want, I can help you with examples of how trusts are treated in tax returns or in specific cases. Would you like that?

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