Spacer
 
Spacer
  Business.gov.in Indian Business Portal
An Initiative of India.gov.in
 
 
Quick Menu
 
Taxation
spacer
Industry & Services Taxation of Individuals
Industry & Services Taxation of Partnerships
Industry & Services Customs Duties
Industry & Services Wealth Tax
Industry & Services Taxation of Corporates
Industry & Services Taxation of Agents
Industry & Services Excise Duty
Industry & Services PAN
Industry & Services Taxation of other forms of business entities
Industry & Services Taxation of Representative offices
Industry & Services Service Tax
Industry & Services TDS,TCS,TAN
Industry & Services Value Added Tax (VAT)
Industry & Services Direct Tax Code
   
 
taxation
Taxation
Taxation of Joint Venture Companies:
Compute the Taxable Income of AOP/BOI
Previous Page
spacer
  • Compute the total income under the different heads i.e. income from house property, profits or gains of business or profession, capital gains, and income from other sources, ignoring the prescribed incomes exemptions. Thus, "gross total income" is obtained.

  • From the gross total income, prescribed deductions under Section 80A of Chapter VIA are made. The balance amount is the taxable income.

    • Interest paid by the AOP/BOI to a member is not allowed as deduction from the income of the AOP/BOI [Section 40(ba) of the Act].

    • Any salary, bonus, commission or remuneration (by whatever name called), paid by the AOP/BOI to a member is not allowed as deduction from the income of the AOP/BOI.

  • The total income of the AOP/BOI is taxable, either at the rates applicable to an individual, or at the maximum marginal rate or at a rate higher than maximum marginal rate. The tax incidence on AOP/BOI depends upon whether or not the individual shares of members in the whole or in any part of the income of the AOP/BOI are determinate:-

    • Where shares of the members are determinate (under Section 67A)
    • The total income of an AOP/BOI wherein the shares of the members are determinate and known shall be computed as follows :

      • Any interest, salary, bonus or remuneration paid to any member of AOP shall be deducted from their total income.

      • The balance income (either profit or loss) shall be apportioned to the members, to which salary, interest, etc. shall be added. This income shall be treated as member's share in income of AOP.

      • The member's share so ascertained shall be apportioned under various heads of income in the same manner as it is done for AOP.

      • Any interest paid by member on capital borrowings for investment purposes in AOP shall be deducted from member's share while computing his income under the head profits and gains of business/profession.

      The tax is chargeable on the total income of an AOP/BOI at the same rate as is applicable in the case of an individual.

      But, when the total income of any member of the AOP/BOI for the previous year (excluding his share from the AOP/BOI) exceeds the maximum amount which is not chargeable to tax in the case of that member under the Finance Act of the relevant year, tax is charged on the total income of the AOP/BOI at the maximum marginal rate (i.e. the highest slab applicable to an individual).

      And, where, the total income of any member of the AOB/BOI (whether or not it exceeds the maximum amount not chargeable to tax in the case of an individual) is chargeable to tax at a rate higher than the maximum marginal rate, tax shall be charged on that portion of the total income of the AOP/BOI which is relatable to such member at a higher rate and the balance of the total income of the AOP/BOI shall be taxed at the maximum marginal rate.

    • Where shares of members are indeterminate(under Section 167B)

      The tax is charged on the total income of the AOP/BOI at the maximum marginal rate, which is the rate of tax (including surcharge, if any) applicable in relation to the highest slab of income in the case of an individual as specified in the Finance Act of the relevant year. However when any member is charged at a higher rate than maximum marginal rate, the income shall be taxed at a higher rate.

^ Top

 
 
Government of India
spacer
 
 
Business Business Business
 
  Search
 
Business Business Business
 
Business Business Business
 
How Do I
Business Register a Company
Business Register as Employer
Business Complaint with Central Vigilance Commission (CVC)
Business Apply for TAN Card
Business File Income Tax
 
Business Business Business
 
Business Business Business
 
  Help us enhance
Business.gov.in
Tell us what more you would like to see
 
Business Business Business
Business
Business Business Business
 
Tenders
View and Access latest Government Tenders...
 
Business Business Business
Business
Business Business Business
 
 
Patent Information
Business
Copyright
Business
Forms Related to Patents
Business
Forms for Design
 
 
Business Business Business
 
 
 
Spacer
Spacer
Business.gov.in  
 
Spacer
Spacer