Sunil
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Incidence of Tax for AOP/ BOI AOP/BOI
When none of the members is a foreign company
Tax incidence on AOP/BOI
Tax incidence on Members
When one (or more) of members is a foreign company Tax incidence on AOP/BOI
Tax incidence on Members
Taxable income of the members of AOP/BOI [SEC 67A(1)] Step 1
Step 2 Step 3
Any interest, salary , bonus, commission or remuneration to members deducted from total income of AOP/BOI. Balance amount is to be shared among members as per their share in AOP/BOI.
Computation of Income of AOP or BOI
• Remuneration not allowed as deduction. [section 40(ba)]. • Interest not allowed as deduction [section 40(ba)]. • When the interest is paid on capital and charged on Drawings.
• When recipient on interest acts in a representative capacity.
Computation of Tax Liability of members of AOP/BOI
When none of the members is a foreign company
Tax incidence on AOP/BOI
Tax incidence on Members
When one (or more) of members is a foreign company Tax incidence on AOP/BOI
Tax incidence on Members
Taxable income of the members of AOP/BOI [SEC 67A(1)] Step 1
Step 2 Step 3
Any interest, salary , bonus, commission or remuneration to members deducted from total income of AOP/BOI. Balance amount is to be shared among members as per their share in AOP/BOI.
Computation of Income of AOP or BOI
• Remuneration not allowed as deduction. [section 40(ba)]. • Interest not allowed as deduction [section 40(ba)]. • When the interest is paid on capital and charged on Drawings.
• When recipient on interest acts in a representative capacity.
Computation of Tax Liability of members of AOP/BOI
