Rate of Tax applicable for AOP - share of member is unknown

[Bipin Parmar]

Dear Sir / Madam,

What's rate of tax applicable on the income earned by AOP - share of members is unknown created for the benefit of persons employed in such business?

Thanks & Regards

Bipin

AI Summary

Clarification Sought on Tax Rate for AOPs: Does Section 167B or 1982 Circular Apply When Member Shares Are Unknown? A user inquired about the tax rate applicable to an Association of Persons (AOP) when member shares are unknown. An expert responded that the maximum marginal rate applies under section 167B, unless a member's tax rate is higher. The user then referenced an Income Tax Circular from 1982, suggesting that section 167A might not apply, and tax should be at the ordinary rate for AOPs. The discussion seeks clarification on whether the act or the circular should be followed for determining the applicable tax rate.