AOP IS A MUTUAL CONCERN HENCE ITS TAX LIABILITY IS GOVERNED BY ITS MEMBERS STATUS..
SECTION 167 B(2)PROVIDES THE TAX RATES APPLICABLE IN CASE OF AOP. WHICH IS AS UNDER
IF TOTAL INCOME OF ANY MEMBER (EXCLUDING SHARE OF INCOME FROM THE AOP) EXCEEDS THE MAXIMUM AMT NOT CHARGEABLE TO TAX I.e 100,000.for assessment year 2007/08 ,RATE OF TAX SHALL BE 30%+SC+EC AS APPLICABLE
HOWEVER IF ANY OF THE MEMBER IS CHARGEABLE TO TAX FOR THE INCOME EXCLUDING SHARE FROM AOP, AT A HIGHER RATE THEN THE INCOME OF AOP SHALL BE CHARGEABLE AT THAT HIGHER RATE...HOPE ABOVE CLARIFY UR QUERY..
ONE MORE THING TOBE CONSIDERED IS THAT SURCHARGE IS APPLICABLE ON AOP WHATEVER ITS TOTAL INCOME MAY HAVE BEEN....
CAclubindia
