n NISM Certifications
X NISM Series X
Medium

According to the Income Tax Act, which of the following entities is not considered a "Person" for tax purposes?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Unregistered AOP/BOI

  2. B

    Non-Profit Organisation

  3. C

    A Handicap person

  4. A Minor

    Correct answer

Why this is the answer

Under the Income Tax Act, a minor is not recognized as a separate person; any income earned or received by a minor is added to the income of the parent or guardian as per section 64(1A), and taxed accordingly.

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