Professional Documents
Culture Documents
Term person is wide term in Income Tax act. The term person includes:
Individual
It means to a natural human being whether male or Female, Minor or
Major
Hindu Undivided Family
It is a relationship created due to operation of Hindu Law. The Manager
of HUF is called Karta, Karta is generally the senior most person
in the family and the members of HUF are called Coparceners.
Company- It is an artificial person registered under Indian Companies
Act 1956 or Companies Act 2013 or any other laws
FirmThe
entity
which
comes
into
existence
as
result of partnership agreement is called as firm. Partnership is defined
as a relation between two or more persons who have agreed to share
the profits of a business carried on by all of them or any of them acting
for
all.
The
owners
of
a
partnership
business are individually known as the partners and collectively as
a firm.
Association
of
Persons
(AOP)
When
persons
combine
together to carry on a joint activities and they do not constitute
partnership
firm,
they are assessable as an Association of Persons. Example Cooperative
housing society
Body
of
Individuals
(BOI)
The
body
of
individuals
has the same meaning of association of person only the difference
between
these
two is that AOP may have members who are non-individual where as
BOI
have
all
individual members. Example Club
Local Authority (LA) Municipality, Panchayat, Cantonment Board, etc.
are called Local Authority
Artificial Judicial Person (AJP) Statutory Corporations like university is
called as artificial judicial person
the building in good condition and this does not increases the earning
capacity of the building in any way.
4. Donations for construction of building: This is a capital receipt because
this money cannot be used to meet day to day expenses of the organisation.
This money can be used only to construct a building (Asset).
5. Annual maintenance grant received from Government: This is a revenue
receipt because this grant is being received from Government to run day to
day activities of the organisation.
Q2(A) RESIDENTIAL STATUS OF AN INDIVIDUAL:
Basic Conditions:
1.The assessee should have stayed in India during the previous year (PY) for
182 days or more
OR
2.The assessee should have stayed in India during the PY for 60 days or more
and should have stayed in India during the four preceding PYs for 365 days
or more.
In the 2nd condition stated above, the 60 days shall be replaced by 182
days, in the following circumstances:
If the assessee, being an Indian Citizen, leaves India during the PY for
employment purposes
If the assessee, being an Indian Citizen or a person of Indian origin has
come back to India for a visit
If the assessee, being an Indian Citizen, leaves India in an Indian Ship
Any assessee satisfying any one of the Basic conditions shall be called as a
Resident
Any assessee not satisfying both of the Basic conditions shall be called as
Non-resident
Additional Conditions (To be applied for a Resident assessee only):
1.The assessee should have been a resident in India (satisfying any one of
the Basic conditions) in atleast 2 out of 10 preceding PYs
AND
3
2.The assessee should have stayed in India for 730 days or more during the
7 preceding PYs.
A Resident shall be called an Ordinarily Resident if he satisfies both the
additional conditions.
A Resident shall be called a Not Oridinarily Resident if he satisfies one or
none of the additional conditions.