Discloser of profit from aop in individual return
This query is : Resolved
21 February 2019
Respected Professional.
Client Having Share of Profit from AOP. Client wants to file his individual IT Return. Which ITR FORM we will use for filing Individual IT RETURN. Please consider the same and provide us reply for this. Thank You.
Client Having Share of Profit from AOP. Client wants to file his individual IT Return. Which ITR FORM we will use for filing Individual IT RETURN. Please consider the same and provide us reply for this. Thank You.
21 February 2019
These provisions are listed in section 86.
The assessment of the members of AOP depends on whether the AOP is chargeable to tax at the maximum marginal rate or at slab rate or is not chargeable to tax at all.
Tax-treatment in the three cases is discussed below:
(i) Where AOP is chargeable to tax at a maximum marginal rate , the share of profit of a member is exempt from tax. Thus, it is not to be included in the total income of the member [Sec. 86(a)].
(ii) Where AOP is not taxed at the maximum marginal rate but it is taxed at slab rates, the share of profit of a member from AOP is to be included in the total income of the member only for rate purposes. The member is entitled to a rebate of tax on the entire share of profit at the average rate of tax applicable to total income. [Sec. 86(b)].
(iii) Where AOP is not chargeable to tax at all, the share of profit of a member from AOP is included in his total income and he will pay tax on it. He is not entitled to any rebate of tax on such profits [Proviso to Sec. 86(b)].
The assessment of the members of AOP depends on whether the AOP is chargeable to tax at the maximum marginal rate or at slab rate or is not chargeable to tax at all.
Tax-treatment in the three cases is discussed below:
(i) Where AOP is chargeable to tax at a maximum marginal rate , the share of profit of a member is exempt from tax. Thus, it is not to be included in the total income of the member [Sec. 86(a)].
(ii) Where AOP is not taxed at the maximum marginal rate but it is taxed at slab rates, the share of profit of a member from AOP is to be included in the total income of the member only for rate purposes. The member is entitled to a rebate of tax on the entire share of profit at the average rate of tax applicable to total income. [Sec. 86(b)].
(iii) Where AOP is not chargeable to tax at all, the share of profit of a member from AOP is included in his total income and he will pay tax on it. He is not entitled to any rebate of tax on such profits [Proviso to Sec. 86(b)].
22 February 2019
Sec 86{b} is applicable to client. Client is an individual. Which ITR FORM we need to use for declaring share of profit from AOP. please reply.
23 February 2019
Dear Mr Rao, Please file form 3 with suitable particulars including all other income of individual.
23 February 2019
Thank You Mr. Vijay Kumar Sir
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
