Persons in Income Tax

What is a Person in Income Tax?

If you want to define a person in income tax, then it includes:

• Individuals
• Partnership Firms
• HUF
• Company
• Local Authorities
• A body of persons, whether they are incorporated or not 
• An individual organization
• Remaining any other legal person

A person who is responsible for paying the taxes is called an assesse. They also come under the category of a person. 

Types of Persons in Income Tax

We have already understood that a man is not only a natural person but also a person of artificial judiciary. The types of person in income tax are described below: 

• Individuals: It includes natural persons of any gender, age, or residency. 
• HUF: Hindu Undivided Family consists of the members of a family in the same lineage. The head is called Karta, and the members are Coparceners. 
• A Partnership Firm: It is a relationship between two or more persons that is based on a contract. It includes the persons who have decided to conduct a business and share its profits. 
• Company: It is a legal entity that is established under the Companies Act. It includes all types of companies, such as Indian Company, foreign Company Parent, Public Company, or any other type. 
• An association or individual body: It includes a group of people who are together to achieve the same goal. 
• Local Authorities: They provide public services, and they are legally responsible. 

Relation Between Person and Assesse

An assesse is a person who is liable to pay taxes. Whether they pay taxes on their own income or with others, it is important for them to pay taxes. But it does not mean that every person has to pay taxes. 

If you are a person whose income is below the income limit as per the income tax, then you don't have to pay any taxes. If you do not have any type of income, then there is also no taxation for you. 

In simple words, we can say that every assesse is a person, but it is not important that every person is an assesse.