AOP BOI

Question 1

Sec. 40(ba)

Answer 1

Interest & Remuneration to Member by AOP/BOI

Question 2

167B

Answer 2

Tax rates of AOP/BOI

Question 3

Shares of members are known

Answer 3

A. All members having NTI up to basic exemption - tax at slabrate like individual

B. One or more members having NTI greater than basic exemption - tax on entire income at maximum marginal rate that is 39% or 42.744%

Question 4

Shares of members are unknown

Answer 4

Tax on entire income at maximum marginal rate that is 39% or 42.744%

Question 5

What is NTI

Answer 5

In computing NTI of members his share from this AOP or BOI shall be excluded

Question 6

While computing PGBP what shall be disallowed

Answer 6

Interest, salary, bonus, commission paid by aop or BOI

Question 7

When should the net interest be disallowed

Answer 7

If any interest is received from the member to whom any interest is paid

Question 8

MMR in case of 115 BAC

Answer 8

39% (30+25+4)

Question 9

MMR for not default regime

Answer 9

42.744% ( 30+37+4)

Question 10

Losses of aop or BOI

Answer 10

Such losses shall be carried forward by such AOP or BOI only

Question 11

Special rates in case AOP or BOI pay tax as per normal tax rate that is slabrate

Answer 11

tax income of Special rate shall be taxable as per special rate of tax only

Question 12

Special rate tax in case AOP or BOI pay taxes as per MMR

Answer 12

Taxable income of special rates shall be taxable as per MMR or such higher rate only

Question 13

67A

Answer 13

Method of computing members share in the income of aop / BOI

Question 14

Step 1 of 67A

Answer 14

Compute NTI of aop BOI

this shall be computed after disallowing salary and interest paid to the members as per section 40(ba)

Question 15

Step 2 of 67A

Answer 15

Net taxable income of aop BOI. xxx
(-) interest and remuneration paid to members. (xxx)

The residual amount shall be allocated to members in PSR

Question 16

Step 3 of 67A

Answer 16

To the amount allocated in step 2, add the interest and remuneration to the respective members

the total shall be members share in income of aop and BOI

Question 17

Why we compute members share?

Answer 17

1. Aop BOI already charged to tax
2. Member share exempt

If aop taxed at slab rate then member share in income of aop BOI to be included in total income of member and member will claim rebate

Members share not to be included in total income of member if aop pay taxes as per MMR.

Question 18

Sec 86

Answer 18

Rebate in respect of members share

Question 19

Computation of total income and tax of members in case of section 86

Answer 19

Share from AOP or BOI
Add: other income of member

Total income

Tax liability on members income hec plus sc

Less rebate under section 86

Share from up or BOI x tax liability
————–——————
Total income

Net tax payable by member