diff. between AOP and BOI ---
an AOP implies a voluntary getting together for common design or combined will to engage in an income producing activities whereas a BOI may or may not have such common design or will ...
plzz help me to understand this by giving example and clarify ....
simply u can understand it as follows
BOI is formed when individuals come together for commercial activities. in this persons other than individuals r not part of it
where
in AOP person other than individuals can also b the members
This is from my notes from my classes..
AOP - Two or more persons joining in a common purpose or action voluntarily for common objective. In an AOP, firm, Co., individuals can be members.
Example - Trust
BOI - It is formed by operation of law. It consists of only individuals. No common will or desire.
When a person dies without having will, and the property of such person falls in the hands of legal heirs then unless they enter into a mutual agreement or family arrangement, tax on income from such property shall be recovered from these legal heirs as a group. Such type of entity shall be BOI.
Example - On the death of an individual, a BOI is formed by operation of law, and the property of the deceased is of that BOI till it is divided between the members.
Very Nice explanation Prerna
thanks prerna
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