Aop/boi clarification

Hi Everyone

Can anyone clarify me that any association created (Eg. Community Welfare) with the motive of not earning any income is classify under AOP/BOI or under Artificial Judicial person??
As according to me, association of two or more person is only classified as AOP/BOI if it is created with the motive to earn any income.....

Replies (3)
Artificial Judicial Persons refers only the companies and body corporates incorporated in India or outside India. The community welfare associations or resident welfare associations are regarded as mutual concerns if they have been formed not with the objective of making profits. The objective should be social security, entertainent, professional development, etc. The income of mutual concern is exempt from tax as far as it is derived from activities of mutual nature, i.e income received by mutual concerns from members is exempt. These mutual concerns can be in any form....it may be an AOP/BOI or even a company. The fact that the mutual concern is incorporated as company does not make any difference because incorporation does not destroy the identity of the contributors and participators.
Income of a mutual concern is taxable in 3situations- firstly, where mutual concern derives income from business of insurance. Secondly, where the mutual concern is a trade, professional or similar association. Thirdly, income received from non-members.

If it receives income by way of interest on FDR then will it be also exempt?????

Its income is taxable at special rate or slab rates????? plz confirm....

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