S K Nagda & Company is expert Chartered Accountants firm in Udaipur for the AOP taxation matters.
Association of Persons means two or more persons who collaborate for a mutual determination with a vision to earn an income. Members in the AOP can be natural (Human beings) or artificial (Artificial Persons-e.g. company, LLP, etc.)
The term association of persons has a legal meaning and denotes to a unit consuming rights and duties. AOP is recognized as person under section 2(31) of the Income Tax Act 1961 it has to be assessed to tax separately.
Therefore it needs a Permanent Account Number (PAN) to be applied first for the AOP/BOI.
Section 86 of the Income tax Act 1961 provides relief from payment of tax on the share of income received from AOP/BOI if the AOP/BOI pays tax on its income at Maximum Marginal Rate.
Tax audit Provisions applicable in general shall mutatis mutandis apply for AOP/BOI. We are the TOP CA firm in Udaipur providing solution of AOP taxation issue.