Save Rs 499 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

AOP - Tax liability

224 views

Save Share

christo

article

30 Points Posted on 17 March 2021

AOP ( resident association) which has got income ₹350000 which includes (ie surplus from mutuality ) , interest from FD and advertisement income.

majority of members of it have got income above basic exemption limit.

a, how tax liability been calculated
slab rate or MMR

b, how to show same in itr, whether surplus from mutuality also disclosed or only other income

Replies (4)

Quick Summary

This discussion clarifies the tax liability for an Association of Persons (AOP) with an income of ₹350,000, including mutuality surplus, FD interest, and advertisement income. It explains that all income types must be disclosed, and tax is calculated at the Maximum Marginal Rate (MMR). If AOP members' shares are determinable and declared proportionally in their individual returns, the AOP itself may not have taxable income, with the liability falling on the members. ITR-5 is the recommended filing form.

CA. Sourav Sarkar

Chartered Accountant

24588 Points Posted on 17 March 2021

Tax should be calculated on Maximum Marginal Rate or MMR.
Income should be shown as other sources

christo

article

30 Points Posted on 17 March 2021

ONLY INCOME FROM FD AND ADVERTISEMENT IS TO BE DISCLOSED? OTHERS ARE NOT TAXABLE RIGHT?

Kapadia Pravin

17269 Points Posted on 17 March 2021

All types of income to be disclosed and considered. IF AOP members shares are determinate and members are showing income proportionately, then no income taxable in AOP return. income will be included in return of members.