CALCULATION OF INCOME TAX OF AOP

[AMIT JAIN, Advocate]

Sir, what is the procedure of calculation for income tax of AOP? i think it is same as well as individual slab rate. But ITO charge 30% tax on AOP income why?

please sir guide me how can i help to my client?

AI Summary

Understanding Tax Procedures for Association of Persons: Maximum Marginal Rate vs. Slab Rate An advocate inquired about the procedure for calculating income tax for an Association of Persons (AOP), noting that the Income Tax Officer charged a 30% tax rate. The response explained that the assessment of AOPs depends on whether they are taxed at the maximum marginal rate, slab rate, or not at all. If taxed at the maximum marginal rate, the member's profit share is exempt from tax. The procedure involves computing total income, deducting prescribed amounts, and determining tax based on whether member shares are determinate or indeterminate, with different tax implications for each scenario.