Thank you very much for your reply.
The link sent by you discusses ‘unregistered Association of Person’. The case I am discussing is a Registered flat owners Association.
The write up provides
“An association of persons (AOP) under the Income Tax Act is an entity or unit of assessment. It means two or more persons who join for a common purpose with a view to earn an income.
Body of individuals (BOI) means a conglomeration of individuals who carry on some activity with the objective of earning some income.”
The case I am discussing is flat owners association and it is not formed to earn income. It has been formed to provide service to members. Incidentally it earns some interest income which is below Rs.2,50,000
Please refer to
https://www.incometaxindia.gov.in/Pages/i-am/aop.aspx?k=Return%20Filing
RETURN FILING
Is it mandatory to file return of income?
Every AOP/BOI whether incorporated or not has to file the return of income if his total income (including income of any other person in respect of which he is assessable) without giving effect to the provisions of section 10(38), 10A, 10B or 10BA or Chapter VIA (i.e., deduction under section 80C to 80U), exceeds the maximum amount which is not chargeable to tax i.e. exceeds the exemption limit.
An association of persons (AOP) or a body of individuals (BOI), whether incorporated or not, is treated as a ‘person’ under section 2(31) of the Income-tax Act, 1961.
When AOP is treated as a person and when the income tax payable for an individual arises only when it is more than Rs.2,50,000 no tax is payable when the AOP’s income is below Rs.2,50,000. Right?
If no tax is payable, then there is no mandatory filing of ITR. Right?
With regards.
S Kalyanasundaram
CAclubindia
