AOP TAXATION IN CASE OF NO PROFIT SHARING


This query is : Resolved 

Quick Summary
This discussion clarifies the taxation of an Association of Persons (AOP) when members neither contribute capital nor share profits. In such scenarios, the AOP is taxed using individual slab rates. If profit shares are indeterminate, the AOP will be taxed at the maximum marginal rate (MMR).

05 January 2023 DEAR EXPERTS,

IF MEMBERS DOES NOT CONTRIBUTE ANY CAPITAL TO AOP AND PROFIT ALSO NOT SHARED BY ANY MEMBER. WHAT IS THE AOP TAX RATE ?

06 January 2023 Individual slab rates applicable.

06 January 2023 When share is inderminate it should be taxed at MMR

06 January 2023 Yes, in such a case.


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