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CS Professional · Advanced Direct Tax Laws and Practice · Computation of Total Income, Tax Liability and Filing of Returns of various Entities excluding Companies

Under the Income-tax Act, 2025 (applicable from the June 2027 session), the provisions on computing a member's share in the income of an association of persons or body of individuals do NOT treat which of the following as an association of persons or body of individuals?

A co-operative society is not an AOP or BOI for the member-share computation provisions. The Act expressly excludes companies, co-operative societies and societies registered under the Societies Registration Act, 1860, whereas informal groups jointly earning income and sharing profits stay within the AOP or BOI concept.

  1. AA co-operative societyCorrect
  2. BAn unregistered body of individuals that jointly carries on a venture and shares its profits
  3. CAn association of persons formed by two or more persons with determinate shares
  4. DA body of individuals jointly earning income from a project

Explanation

Section 309(1) provides that, for these provisions, an association of persons or body of individuals does not include a company, a co-operative society, or a society registered under the Societies Registration Act, 1860. Unregistered groups jointly earning income remain within the AOP/BOI concept, so only the co-operative society is excluded.

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