Please suggest under which head of income, Members share of profit in AOP taxable? PGBP or IFOS?
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Quick Summary
This discussion explores how members' profit shares from an Association of Persons (AOP) are taxed. It clarifies that while some income might be exempt, normal profit shares are taxable in the hands of members, subject to a rebate under Section 86. The core question is whether this income should be classified under Profits and Gains from Business or Profession (PGBP) or Income from Other Sources (IFOS).