The tax control provisions that are generally applicable apply mutatis mutandis to PDAs/BOI, the audit report is in the form of a CD 3CB. In short, it could be said that a PDO (association of persons) has legal significance and constitutes an entity with duties and rights. For example, if a group of people travels on a train or waits for a bus at the bus stop, it may be a group of people or, quite literally, a “body of individuals.” However, they are not a PDO (Association of Persons) in the legal sense of the term. A member`s share of the total income of a PDO is treated as follows. In order to obtain PAN, AOP/BOI management completes the NAP application, i.e. on Form 49A, and pays the prescribed fee with the application and files this application with a single notarized deed. In the absence of governing bodies, the 1961 Income Tax Act included AOP or BOI under the definition of persons in section 2.31 for the imposition of these IDOs/BOIs. If the total income of a PDO-AOP-AOP is above the exemption ceiling without its income being included in the PDO, such a PDO is taxed at a tax rate greater than 30%, plus an increase plus the high school and secondary education diploma, as long as its total income is applicable. You can see that a PDO is formed and not created.

A PDO can either register or not remain registered. The association of people usually means that two or a few people come together and form an association in which the goal is to achieve the same goal. It should be noted that the word “person” encompasses each person, be it a HUF, individuals, etc. Please read the table on the next page for the tax rate for AOP/BOI Nitin Jogad – Associates Chartered Accountants does not take responsibility for losses resulting from actions taken or not by people who use this blog. The tax payable by AOP/BOI may not be less than 18.5% (increased by mark-up and HEC) of the “adjusted total income” in accordance with Section 115C. However, the alternative minimum tax provisions do not apply to a PDO or BOI whose total adjusted income does not exceed twenty lakh rupees. Management will now continue the activities of AOP/BOI or work towards the common goal for which it was formed. AOP/BOI may or may not make profits/losses as a result of the activity. If the AOP/BOI is formed to manage business and earn profits, let`s assess the imposition of such a profit or loss. 3. EMPLOIS` PROVIDENT FUNDS AND MISCELLANEOUS PROVISIONS ACT, 1952 A: Share of members in the benefit of AOP/BOI is actually indicated.

There are two situations that can arise from a case like this. They are presented as a reference in the table below. Section 86 of the Income Tax Act 1961 provides an exemption from paying tax on the share of income collected by AOP/BOI if the PDO/BOI pays income taxes at the maximum rate (MMR-30%-SC-Cess).