Under the Income Tax Act, 2025 (which replaced the old 1961 Act effective from April 1, 2026), the legal concept of an Artificial Juridical Person (AJP) remains fully preserved, but its exact position and section numbers have changed. [1, 2]
The direct equivalent of Section 2(31)(vii) of the 1961 Act is now housed under Section 2(77) of the New Income Tax Act, 2025. [1]
Key Legal Changes & Equivalences
- New Section Placement: The definition of a "Person" has moved from Section 2(31) to Section 2(77) of the 2025 Act. [1]
- Textual Integrity: The definition of an AJP remains virtually identical in substance. It continues to be the ultimate residuary clause, capturing any legal entity that does not fit into standard slots like an Individual, HUF, Company, or Firm. [1, 2, 3]
- The "Object of Profit" Rule: The explanation clarifying that an AJP is a "person" regardless of whether it was formed to earn profits is fully retained in the 2025 framework to prevent non-profits or public entities from evading compliance. [1, 2]
Tax Regime Equivalences under the 2025 Act
The 2025 Act streamlines how an AJP is taxed, moving complex overlapping clauses into concise, standalone chapters: [1, 2]
| Feature / Provision [1, 2, 3, 4, 5] | Old Act (1961) | New Act (2025) | Continuity Status |
|---|---|---|---|
| Definition of "Person" (AJP) | Section 2(31)(vii) | Section 2(77) | Identical in legal scope. |
| New Tax Regime Slabs | Section 115BAC | Section 202 | Default tax system for AJPs. |
| Dissolution / Event Assessment | Section 174A | Section 318 | Special accelerated assessment rules if the AJP dissolves early. |
Impact on Tax Filings
Even under the New Income Tax Act, 2025, entities like public universities, bar councils, and deities remain distinct juristic taxpayers. They continue to file their returns using ITR-5 and are bound to the same basic exemption thresholds as an Association of Persons (AOP).
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