Taxability of AOP

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This discussion clarifies the tax implications for unregistered trusts and Associations of Persons (AOPs). Generally, the entire gross receipts are taxable, though specific rules apply. For instance, rental income allows for a 30% deduction. However, if a school is run by an unregistered trust, only the net income from fees is taxable, not the entire collection. Donations, on the other hand, are fully taxable.

Shakthi

Shakthi

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06 March 2020 Dear Sir
In the case of an unregistered trust or AOP, 1) entire gross receipts will be taxable or only the net income after application will be taxable.
2) If they have rental income 30percent deductions allowed?

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 March 2020 1 Entire gross income taxable.
2 30% deduction allowed on rental income.

Shakthi

Shakthi

(Querist)
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06 March 2020 Sir If the unregistered trust is running a school then entire fees collected will be taxable or only the net income will be taxable . Please help

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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06 March 2020 Only the net income is taxable in case school fees collection. Donation taxable fully.

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