| Question And Answer | |
|---|---|
| Subject: | AOP TAXATION |
| Category: | Income-Tax |
| Querist: | Raghavendra koundinya |
| Answered by: | Law Intern |
| Tags: | Association of persons (AOP), MMR tax |
| Date: | November 21, 2025 |
Hello experts for an AOP which is a residential welfare association what do u mean by MMR. SHares are not determinable and hence MMR is applicable. Does MMR include surcharge also at the highest rate or does the surcharge remains as per the slabs. Income of AOP is 42 lakhs for FY 2021-22 Can u someone let me know what is the tax rate including surcharge(if any) for the above income. Above income is the interest income and other source income for the AOP. If possible quote the section so that we can advise the client along with the provision applicable. Thanks in advance
U/s 167B(1), since the shares of members in the AOP’s income are not determinable, the entire total income of the AOP is chargeable to tax at the MMR.
If your RWA is registered under the Societies Registration Act, 1860 (or equivalent state law), s. 167B does not apply & taxation would be at individual slab rates.
Surcharge remains as per the slabs.
Income of ₹42 lakh will be taxable at the highest slab rate of 30%. No surcharge is payable as the income is below ₹50 lakh. Cess is payable at 4% of the tax.