The tax payable by AOP/BOI may not be less than 18.5% (plus a surtax and UN HEC) of the «adjusted total income» under Article 115JC. However, the provisions relating to alternative minimum taxes do not apply to the PDO or BOI whose total adjusted income does not exceed twenty lakh rupees. Bodies of Individuals (BOI) refers to a group of INDIVIDUALS (people) who come together to achieve a common goal. In the event that one of the members has a total income that exceeds the maximum exemption limit. It would be difficult to find a definition of Association of Persons (AOP) in Indian law. Although there are no direct definitions, the General Clauses Act of 1897 defines an association while a person is defined. A PDO is created by the relationship that forms between the parties. It may or may not be a consortium or joint venture that may or may not be registered. The provisions of §§ 167B and 86 have been condensed in the table below. An association of persons (AOP) or a partnership of natural persons (BOI), whether registered or not, is treated as a «person» under section 2(31) of the Income Tax Act 1961. As a result, the CFS or BOI is treated as a separate entity for valuation purposes under the Income Tax Act. Each PDO/BOI, whether registered or not, must file the tax return if its total income exceeds the property tax exemption limit. However, if, in that case, the income of one or more members of the PDO is levied at a rate exceeding 30 % plus the supplement and the school levy plus levies on secondary and higher education, the tax shall be levied on the part or part of the income of the PDO which may be attributed to the share of such a member at such a high rate: and the balance of revenue is taxable at the maximum marginal tax rate.
The tax rate to be applied to AOP/BOI`s taxable income depends mainly on whether or not the members` share of AOP/BOI`s profits is indicated in the share. However, if the income of a PDO member is calculated at a rate greater than 30%, the tax on the total income of the PDO is also levied at such a high rate. To obtain the NAP, the AOP/BOI Directorate completes the NAP application, i.e. in Form 49A, pays the prescribed fee with the application and submits this application only with a notarized fact. 1. CENTRAL GOODS AND SERVICE TAX ACT 2017 (CGST ACT), ESPECTIVE SGST ACT 2017 Now that we have the basic understanding of the PDO or BOI, let us understand their effects under income tax 1961 since the PDO/BOI is recognized as a person under section 2(31) of the Income Tax Act 1961, it must therefore be taxed separately, so a permanent account number (PAN) must first be used for the PDO/BOI. In addition, the NAP is required for the operation of a bank account. In short, an association of persons may apply for the association of persons, which exists under the following conditions.
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