Income apportionment in AOPs and BOIs: structured deduction and allocation of member remuneration and interest for tax computation.
Both Clause 309 and Section 67A set out a structured method for computing a member's share in an AOP/BOI: deduct interest, salary, bonus, commission or remuneration from total AOP/BOI income, apportion the residual among members by entitlement and treat apportioned shares under the same heads of income; where apportioned results are profitable the remuneration is added back, and where loss it is adjusted; interest on capital borrowed by a member for investment is deductible under Profits and gains of business or profession; "paid" means actually paid or incurred per the accounting method used.