X Ltd, Y & Co (a partnership firm) and Mr Z, without forming a partnership, join together in a joint venture with the common purpose of earning income. In which class of 'person' under the…
Question and options
X Ltd, Y & Co (a partnership firm) and Mr Z, without forming a partnership, join together in a joint venture with the common purpose of earning income. In which class of 'person' under the Income-tax Act, 2025 is the joint venture assessed?
A body of individuals
A firm
A Hindu undivided family
An association of persons
Answer and explanation
Section 2(77)(e) of the Income-tax Act, 2025 lists an association of persons, which may be formed by individuals, companies, firms or any mix of them joining for a common purpose of earning income. It is not a body of individuals, because a body of individuals can have only individuals as members, and it is not a firm, because no partnership has been formed.
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