'X' and 'Y' are legal heirs of 'Z'. 'Z' died in 2016 and 'X' and 'Y' carry on his business without…
Their joint business is assessed as an association of persons. They carry on a common income-earning activity without constituting a partnership, and their status as heirs…
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'X' and 'Y' are legal heirs of 'Z'. 'Z' died in 2016 and 'X' and 'Y' carry on his business without entering into partnership. Status of 'X' and 'Y' as per the Income-tax Act, 2025 is:
Answer and explanation
Correct answer C
Their joint business is assessed as an association of persons. They carry on a common income-earning activity without constituting a partnership, and their status as heirs alone does not make them a Hindu undivided family or an artificial juridical person.
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Madhya Pradesh SET (MP SET)