Saturday, September 29, 2018

Distinction between AOP & BOI – Taxation

-:The distinction between AOP & BOI – Taxation:-

Distinction between AOP & BOI – Taxation

  • An association of persons (AOP) and a group of persons (BOI) transmit two different orders of persons. The fact that both expressions are sometimes used interchangeably does not justify the restrictive interpretation. We must stop using the words as they represent two different compositions.
  • The 1961 Indian Income Tax Law defines the Association of Persons (AOP) as the integration of persons for mutual benefit or common purpose. In addition, the BOI (Body of Individuals) resembles an AOP and is also a collection of individuals who have joined forces to earn income. However, there are some differences between a union of people and a body of individuals.
  • A person in AOP could be a company or an individual person. The term person could include any association, body of individuals or company, irrespective of whether it is incorporated or not. However, in a BOI, only individuals can join with the intention of earning some income. Hence we can say, BOI only comprises of individuals, whereas an AOP could include legal entities.
  • A man in AOP could be an organization or a distinct individual. The term individual could incorporate any affiliation, collection of people or organization, independent of whether it is fused or not. In any case, in a BOI, no one but people can join with the aim of acquiring some salary. Subsequently, we can state, BOI just involves people, while an AOP could incorporate lawful substances.

  • More or less, one might say that an AOP (relationship of people) has a lawful significance and it speaks to a unit having obligations and rights. For example, if a gathering of individuals are going in a prepare, or sitting tight for a transport at the transport stop, they may be a gathering of individuals or in the strict sense a "group of people". Be that as it may, they're not an AOP (relationship of people) in a legitimate sense.

-: Tax assessment of AOP and BOI:- 

 If the individual share member of BOI or AOP could be UKNUNDETERMINEDMINE

If the individual share member of BOI or AOP could be Known/determine

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