Discloser of profit from aop in individual return

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n.srinivasarao (Querist)

21 February 2019 Respected Professional.

Client Having Share of Profit from AOP. Client wants to file his individual IT Return. Which ITR FORM we will use for filing Individual IT RETURN. Please consider the same and provide us reply for this. Thank You.

VIJAY KUMAR

VIJAY KUMAR (Expert)

21 February 2019 These provisions are listed in section 86.

The assessment of the members of AOP depends on whether the AOP is chargeable to tax at the maximum marginal rate or at slab rate or is not chargeable to tax at all.
Tax-treatment in the three cases is discussed below:
(i) Where AOP is chargeable to tax at a maximum marginal rate , the share of profit of a member is exempt from tax. Thus, it is not to be included in the total income of the member [Sec. 86(a)].
(ii) Where AOP is not taxed at the maximum marginal rate but it is taxed at slab rates, the share of profit of a member from AOP is to be included in the total income of the member only for rate purposes. The member is entitled to a rebate of tax on the entire share of profit at the average rate of tax applicable to total income. [Sec. 86(b)].
(iii) Where AOP is not chargeable to tax at all, the share of profit of a member from AOP is included in his total income and he will pay tax on it. He is not entitled to any rebate of tax on such profits [Proviso to Sec. 86(b)].

n.srinivasarao

n.srinivasarao (Querist)

22 February 2019 Sec 86{b} is applicable to client. Client is an individual. Which ITR FORM we need to use for declaring share of profit from AOP. please reply.

VIJAY KUMAR

VIJAY KUMAR (Expert)

23 February 2019 Dear Mr Rao, Please file form 3 with suitable particulars including all other income of individual.

n.srinivasarao

n.srinivasarao (Querist)

23 February 2019 Thank You Mr. Vijay Kumar Sir

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