Tax Rate of AOP registered under Society Act

Somani Mayank

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Dec 23, 2015, 12:28:21 AM12/23/15

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What is the Income tax rate of AOP ,registered under Society Act and shares of members unknown.

Whether Slab of rate of tax applicable to Individual also apply to AOP registered under Society Act.

If yes, any one highlight details provisions under Income Tax Act.

CA Mayank Somani

vinay tiwari

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Dec 26, 2015, 12:38:44 AM12/26/15

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Tax liability of AOP/BOI depends on whether or not share of members of AOP/BOI are known.

1) Where share of members are known

Where individual shares of members in AOP/BOI are known then tax liability of AOP/BOI shall be determined as under:

a. Where income of none of the members exceeds the the maximum amount which is not chargeable to income-tax (i.e., basic exemption limit) In this case income of AOP/BOI shall be taxable at a rate applicable to an individual. But if total income of any member of AOP/BOI is taxable at a rate higher than maximum marginal rate then income of AOP/BOI shall be chargeable to tax as follows:
- Portion of income attributable to such member shall be taxable at such high rate as applicable to that member.
- Balance portion of income shall be taxable at the maximum marginal rate of tax (i.e., 30% plus surcharge, EC and SHEC as applicable) .

b. Where income of any member of AOP/BOI exceeds the maximum amount which is not chargeable to income-tax (i.e., basic exemption limit) In this case income of AOP/BOI shall be taxable at maximum marginal rate of tax (i.e., 30% plus surcharge, EC and SHEC as applicable). But if total income of any member of AOP/BOI is taxable at a rate higher than maximum marginal rate then income of AOP/BOI shall be chargeable to tax as follows:
- Portion of income attributable to such member shall be taxable at such high rate as applicable to that member.
- Balance portion of income shall be taxable at the maximum marginal rate of tax (i.e., 30% plus surcharge, EC and SHEC as applicable).

2) Where share of members are not known

In such a case income of the AOP/BOI shall be taxable at maximum marginal rate (i.e., 30% plus surcharge, EC and SHEC as applicable). But if income of any member of AOP/BOI is taxable at a rate higher than maximum marginal rate then total income of AOP/BOI shall be chargeable to tax at such higher rate of tax.

For the purposes of this section, the individual shares of the members of an AOP or BOI in the income of AOP/BOI shall be deemed to be indeterminate or unknown if such shares are indeterminate or unknown on the date of formation of such AOP or BOI or at any time thereafter.

Alternate Minimum Tax:

Tax payable by AOP/BOI cannot be less than 18.5 per cent (increased by Surcharge, EC and SHEC) of "adjusted total income" as per section 115JC. However, provisions related to alternate minimum tax shall not apply to an AOP or BOI whose adjusted total income does not exceed twenty lakh rupees.

Thanks & Regards.

CA VINAY KUMAR TIWARI

Ph. No. 033-2262-7553
Mobile. +919830193306

Save the Environment. Save Paper. Avoid printing of this mail Yesterday is a history, Tomorrow is mystery.Today is a Gift thats why we call it a Present.

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On Mon, 12/21/15, Somani Mayank <camayan...@gmail.com> wrote:

Subject: [CA RUNGTA PD] Tax Rate of AOP registered under Society Act
To: foru...@googlegroups.com
Date: Monday, December 21, 2015, 11:14 PM

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Somani Mayank

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Dec 28, 2015, 12:27:11 AM12/28/15

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Thank you Vinay for your response.

I agree with your answer that AOP will be chargeable maximum marginal rate where shares of members are unknown and individual members are chargeable maximum rate i.e 30.9%.

Is your answer will be different if

AOP registered under Society Act and shares of members are unknown and individual members are taxable maximum marginal rate.

I think, under this situation, individual tax slab should apply i.e

Total Income

up to - 2,50,000.00 - Nil

2,50,010 to 5,00,000- @ 10%

5,00,010 to 10,00,000- @ 20%

Above Rs.10,00,000- @ 30%

Plus Education Cess @ 3%

Thanking You.

Mayank Somani

MAYANK SOMANI & CO

Chartered Accountants

PHG Road,

Dergaon, Dist-Golaghat

PIN-785614 (Assam)

Somani Mayank

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Jan 2, 2016, 12:25:16 AM1/2/16

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vinay tiwari

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Jan 4, 2016, 12:38:59 AM1/4/16

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Yes, If AOP registered under Society Act , individual tax slab should apply

Thanks & Regards.

CA VINAY KUMAR TIWARI

Ph. No. 033-2262-7553
Mobile. +919830193306

Save the Environment. Save Paper. Avoid printing of this mail Yesterday is a history, Tomorrow is mystery.Today is a Gift thats why we call it a Present.

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On Fri, 1/1/16, Somani Mayank <camayan...@gmail.com> wrote:

Subject: Fwd: Re: [CA RUNGTA PD] Tax Rate of AOP registered under Society Act
To: foru...@googlegroups.com
Date: Friday, January 1, 2016, 4:26 AM

30%Plus Education Cess @ 3%

ANUP GUPTA

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Jan 4, 2016, 12:40:39 AM1/4/16

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If aop is society under society act... then for the purpose of taxability it shall not be treated as AOP and Normal rate would be applicable as applicable to individual. You may refer the taxation of AOP (there is specific exclusion).

Few time back,i also faced such kind of problem now it is clear

Thanks with regard
CA Anup Gupta

Arvind Poddar

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Jan 5, 2016, 12:29:02 AM1/5/16

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Please inform about the provisions under which this differential treatment is allowed to a society with members having indeterminate income.

Also inform whether this can be made applicable to an Industry Association registered under the Societies Act. I am trying to upload ITR 5 for this Association, but benefit of individual tax slab or mutuality is not being allowed.

sanjay kumar dey

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Jan 6, 2016, 12:34:55 AM1/6/16

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Dear all,

Please note there exist different tax rate for AOP.

Regards
CA Sanjay Dey

On Tue, 05 Jan 2016 10:59:03 +0530 "'Arvind Poddar' via forum4ca" wrote

>Please inform about the provisions under which this differential treatment is allowed to a society with members having indeterminate income.

Also inform whether this can be made applicable to an Industry Association registered under the Societies Act. I am trying to upload ITR 5 for this Association, but benefit of individual tax slab or mutuality is not being allowed.

-----Original Message-----

From: foru...@googlegroups.com [mailto:foru...@googlegroups.com]

Sent: 03 January 2016 17:04

To: foru...@googlegroups.com

Subject: Re: Fwd: Re: [CA RUNGTA PD] Tax Rate of AOP registered under Society Act

Yes, If AOP registered under Society Act ,individual tax slab should apply

Thanks & Regards.

CA VINAY KUMAR TIWARI

Ph. No. 033-2262-7553

Mobile. +919830193306

Save the Environment. Save Paper. Avoid printing of this mail Yesterday is a history, Tomorrow is mystery.Today is a Gift thats why we call it a Present.

--------------------------------------------

On Fri, 1/1/16, Somani Mayank wrote:

Subject: Fwd: Re: [CA RUNGTA PD] Tax Rate of AOP registered under Society Act

To: foru...@googlegroups.com

Date: Friday, January 1, 2016, 4:26 AM

---------- Forwarded

message ----------

From: "Somani

Mayank"

Date: 26 Dec 2015 11:40 a.m.

Subject: Re: [CA RUNGTA PD] Tax Rate of AOP registered under Society Act

To:

Cc:

Thank you Vinay for your

response.

I agree with

your answer that AOP will be chargeable maximum marginal rate where shares of members are unknown and individual members are chargeable maximum rate i.e 30.9%.

Is your answer will be different

if

AOP

registered under Society

Act and shares of members are unknown and individual members are taxable maximum marginal rate.

I think, under

this situation, individual tax slab should apply i.e Total Incomeup to - 2,50,000.00 -

Nil2,50,010 to 5,00,000- @ 10%5,00,010

to 10,00,000- @ 20%Above Rs.10,00,000- @ 30%Plus Education Cess @ 3% Thanking You.

Mayank

SomaniMAYANK SOMANI &

COChartered

AccountantsPHG

Road,Dergaon,

Dist-GolaghatPIN-785614

(Assam)

On

Wed, Dec 23, 2015 at 12:28 AM, 'vinay tiwari' via forum4ca

wrote:

Tax

liability of AOP/BOI depends on whether or not share of members of AOP/BOI are known.

1) Where share of members are known

Where individual shares of members in AOP/BOI are known then tax liability of AOP/BOI shall be determined as under:

a. Where income of none of the members exceeds the the maximum amount which is not chargeable to income-tax (i.e., basic exemption limit) In this case income of AOP/BOI shall be taxable at a rate applicable to an individual. But if total income of any member of AOP/BOI is taxable at a rate higher than maximum marginal rate then income of AOP/BOI shall be chargeable to tax as follows:

- Portion of income attributable to such member shall be taxable at such high rate as applicable to that member.

- Balance portion of income shall be taxable at the maximum marginal rate of tax (i.e., 30% plus surcharge, EC and SHEC as applicable) .

b. Where income of any member of AOP/BOI exceeds the maximum amount which is not chargeable to income-tax (i.e., basic exemption limit) In this case income of AOP/BOI shall be taxable at maximum marginal rate of tax (i.e., 30% plus surcharge, EC and SHEC as applicable). But if total income of any member of AOP/BOI is taxable at a rate higher than maximum marginal rate then income of AOP/BOI shall be chargeable to tax as follows:

- Portion of income attributable to such member shall be taxable at such high rate as applicable to that member.

- Balance portion of income shall be taxable at the maximum marginal rate of tax (i.e., 30% plus surcharge, EC and SHEC as applicable).

2) Where share of members are not known

In such a case income of the AOP/BOI shall be taxable at maximum marginal rate (i.e., 30% plus surcharge, EC and SHEC as applicable). But if income of any member of AOP/BOI is taxable at a rate higher than maximum marginal rate then total income of AOP/BOI shall be chargeable to tax at such higher rate of tax.

For the purposes of this section, the individual shares of the members of an AOP or BOI in the income of AOP/BOI shall be deemed to be indeterminate or unknown if such shares are indeterminate or unknown on the date of formation of such AOP or BOI or at any time thereafter.

Alternate Minimum Tax:

Tax payable by AOP/BOI cannot be less than 18.5 per cent (increased by Surcharge, EC and SHEC) of "adjusted total income" as per section 115JC. However, provisions related to alternate minimum tax shall not apply to an AOP or BOI whose adjusted total income does not exceed twenty lakh rupees.

Thanks & Regards.

CA VINAY KUMAR TIWARI

Ph. No. 033-2262-7553

Mobile. +919830193306

Save the Environment. Save Paper. Avoid printing of this mail Yesterday is a history, Tomorrow is mystery.Today is a Gift thats why we call it a Present.

--------------------------------------------

On Mon, 12/21/15, Somani Mayank