Body of Individuals

Body of Individuals (BOI) is also similar to an Association of Persons. However, in a Body of Individuals, only two or more individuals can join with an intention to earn some income. Hence, Body of Individuals only contains individuals, while an Association of Persons could contain legal entities.
BOI can be assessed in the following manners:
BOI, the individual share of members are unknown or intermediate.
BOI, the individual share of members are known or determinate.

Individual Shares of Members – Unknown

When the individual share of the members of BOI in the whole or part of its income are intermediate or unknown, tax shall be charged on the Total Income (exclusive of income taxable at special rate) of the BOI at the maximum marginal rate.

Individual Shares of Members – Known

Where the total income of any member of BOI exceeds the Maximum Exemption Limit, the particular member with a higher income will be charged at the maximum marginal rate @ 30% plus surcharge @ 10.15% as the case may be, if applicable, along with Cess at the rate of 3% on his/her total income, exclusive of income taxable at special rate.

Share of Income and Exemption Rules

• Where the BOI pays tax at a higher or marginal rate, the share of profit of BOI will not be included in the Total Income of the members, and thereby will be exempted.
• Where the BOI pays tax at the same rate as applicable to an individual, the resulting share of income shall be included into the Total Income of each of the members.