Festive Savings Are Here. Get 10% OFF on All CCI Pro Plans. Subscribe Now!

AOP members collection is exempt?

360 views

Save Share

Join Us Follow Us Add as Source

prashant desai

165 Points Posted on 11 March 2020

income from housing Society members collection is exempt or taxable
if it is exempt under which section (ITR-5)

Replies (2)

Quick Summary

This discussion clarifies the tax treatment of income received by members from an Association of Persons (AOP). If the AOP pays tax at the Maximum Marginal Rate (MMR), the income is exempt for members. However, if the AOP pays tax at the normal rate, the income is taxable for members, though they may claim relief under Section 86. The thread also touches upon how to reflect this exempt income in tax returns, specifically regarding ITR-5 and balance sheets.

CA Naveen Chand

Chartered Accountant

8022 Points Posted on 11 March 2020

Income of members received from AOP is EXEMPT if AOP paid tax @ MMR (Maximum Marginal Rate)

Otherwise , Income of Member of AOP shall be included in Total Income of members if AOP pays taxes @ Normal Rate. However , members can take benefit of Relief u/s 86 (after calculating surcharge and cess) .