Taxation of AOP

[Ali Ahmed Khan]

An AOP having income solely from House property, TDS for the same has been deducted & file return for the period fy13-14 showing 100% tax refundable, as GTI shown nil because income received is distributed among members in their respective determine shares & thus AOP remain with no income left . But notice u/s139(9) recieved stating why GTI is nil against which TDS is claim for refund. My query is whether AOP is taxable including Income from House Property or members are taxed. Although if members are taxed than how TDS shall be utilised for payment of tax.

AI Summary

AOP Rental Income Taxation: TDS Deducted Under AOP's PAN Requires Inclusion in Gross Total Income Per Section 139(9). An anonymous user inquired about the taxation of an Association of Persons (AOP) with income solely from house property. The AOP filed a return for FY 2013-14 showing 100% tax refundable, as the income was distributed among members, resulting in no gross total income (GTI) for the AOP. A notice under Section 139(9) was received questioning the nil GTI. Replies suggested that if rental income and TDS were under members' PANs, taxation should be member-wise. However, since TDS was deducted under the AOP's PAN, the AOP should include rental income in its GTI, apply standard deductions, and be taxed accordingly.