AOP members collection is exempt?

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.