Section 2 of Income Tax Act, 1961 having the broad meaning of the various key terms and expressions used therein. In order to understand the provisions contained in the Act one must have through knowledge of the terms used in the provisions therein like Income, Assessee, etc.,
Apart that there are some specific commonly understood terms are also referred in the Income Tax Act, 1961 which are having wider definition therein, for instance Dividend, Transfer, etc.,. In order to understand the meaning of those terms regarding to the Income Tax, we must search the definitions given in the Act. If the definition is not found in the Act, then we have to refer the General Clauses Act or Dictionaries.
Here are some commonly used terms are enumerated below.
- Hindu Undivided Family (HUF)
- Association of Persons (AOP) or Body of Individuals (BOI), whether incorporated or not.
- Local Authority
- Artificial Juridical Person for instance, an Idol or Deity.
- Infrastructure Capital Company
- Infrastructure Capital Fund