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Taxation of AOP

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praveen kumar

Student

25 Points Posted on 06 July 2020

Dear Colleagues,

I have one small query on Taxability of AOP. There is a flat association which is formed as Association of Persons (AOP) under Income Tax Act, and their main objective is to maintain the flats by collecting maintenance receipts from the members and spending for the flats. Apart from that, the AOP is having some FD's in the bank where they use to get FD interest. Now, if suppose the AOP is getting net taxable income, how this income will get taxed in the hands of AOP under Income Tax Act, 1961?

Replies (2)

Quick Summary

This discussion explores the taxability of an Association of Persons (AOP) formed by flat owners for property maintenance. It clarifies how income generated from maintenance receipts and fixed deposit interest is treated under the Income Tax Act, 1961. The conversation touches upon different tax rates applicable based on the AOP's net taxable income and member shares.

Ravi SADhiyan

Practice

4510 Points Posted on 06 July 2020

Originally posted by : praveen kumar
	Dear Colleagues, I have one small query on Taxability of AOP. There is a flat association which is formed as Association of Persons (AOP) under Income Tax Act, and their main objective is to maintain the flats by collecting maintenance receipts from the members and spending for the flats. Apart from that, the AOP is having some FD's in the bank where they use to get FD interest. Now, if suppose the AOP is getting net taxable income, how this income will get taxed in the hands of AOP under Income Tax Act, 1961?

If in AOP shares of members in known and All member Net Taxable Income less than basic exemption than TAX at slab rate otherwise MMR rate is applicable 30% +37%+4%