GK
TAXES IN INDIA
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Persons other than individual only
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Individual only
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Both of the above
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None of these
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Detailed explanation-1: -An association of persons may contain of non-individuals but a body of individuals has to consist of individuals only. If two or more persons such as firm, company, Hindu Undivided Family, individual etc. join together, it is called an association of persons.
Detailed explanation-2: -Any person can be a member in an association of persons whereas only individuals can be members in a body of individuals; There is common will and desire among the members of an association of persons and they voluntarily join together to carry on the activities.
Detailed explanation-3: -It is important to note that an AOP or BOI shall be deemed to be a person, whether or not, it was formed or established or incorporated with the object of deriving income, profits or gains.
Detailed explanation-4: -Individual is a unit of assessment covered under definition of person as per Income Tax Act and it refers to a natural person, i.e. a human being (male or female). Same way each class of persons has its own scope of coverage under Income Tax Act.