Method of computing member's share in AOP/BOI: deduction of member payments, apportionment across income heads, interest relief. Section 67A prescribes that, where members of an association of persons or body of individuals have determinate shares, any interest, salary, bonus, commission or remuneration paid to a member in respect of the previous year shall be deducted from the association's total income and the balance apportioned among members; if the apportioned amount to a member is a profit the remuneration is added to that amount, if a loss the remuneration is adjusted against it. The computed share is apportioned under the various heads as determined for the association, and interest on capital borrowed for investing in the association is deductible against the member's business income share.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Method of computing member's share in AOP/BOI: deduction of member payments, apportionment across income heads, interest relief.
Section 67A prescribes that, where members of an association of persons or body of individuals have determinate shares, any interest, salary, bonus, commission or remuneration paid to a member in respect of the previous year shall be deducted from the association's total income and the balance apportioned among members; if the apportioned amount to a member is a profit the remuneration is added to that amount, if a loss the remuneration is adjusted against it. The computed share is apportioned under the various heads as determined for the association, and interest on capital borrowed for investing in the association is deductible against the member's business income share.
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