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 Returns and Forms Applicable to Association of Persons (AOP) / Body of Individuals (BOI) / Trust / Artificial Juridical Person (AJP) for AY 2025-26

 

 

Disclaimer: The content on this page is only to give an overview / general guidance and is not exhaustive. For complete details and guidelines, please refer Income Tax Act, Rules and Notifications.

 

 

An Association of Persons (AOP) or a Body of Individuals (BOI), whether incorporated or not is treated as a person u/s 2(31) of the Income Tax Act, 1961. It is important to note that an AOP or BOI shall be deemed to be a person, whether or not, it was formed or established or incorporated with the object of deriving income, profits or gains.

Trust created wholly for charitable or religious purposes are allowed various benefits under the Income Tax Act, inter-alia, exemption u/s 11. 
 

Artificial Juridical Person - If an Assessee does not fall under any of the other categories that are included in the definition of Person then it is regarded as an Artificial Juridical Person. These entities are not natural persons but separate entities as per law. 

 

 

1. ITR-5

This form can be used by a Person being a:

  1. Firm
  2. Limited Liability Partnership (LLP)
  3. Association of Persons (AOP)
  4. Body of Individuals (BOI)
  5. Artificial Juridical Person (AJP) referred to in clause (vii) of Section 2(31)
  6. Local Authority referred to in clause (vi) of Section 2(31)
  7. Representative Assessee referred to in Section 160(1)(iii) or (iv)
  8. Cooperative Society 
  9. Society registered under Societies Registration Act, 1860 or under any other law of any State
  10. Trust other than Trusts eligible to file Form ITR-7
  11. Estate of Deceased Person
  12. Estate of an Insolvent
  13. Business Trust referred to in Section 139(4E) 
  14. Investments Fund referred to in Section 139(4F)

  Note: However, a person who is required to file the Return of Income u/s 139(4A) or 139(4B) or 139(4D) shall not use this form.

 

2. ITR-7 

Applicable for Persons including Companies who are required to furnish return u/s 139(4A) or Section 139(4B) or Section 139(4C) or Section 139(4D)

139(4A) – 
Income derived from Property held under Trust wholly / in part for charitable or religious purposes

139(4B) –
Chief Executive Officer of every Political Party

139(4C) – 
Various entities like Research Association, News Agency, etc. mentioned in Section 10

139(4D) –
University, College or other Institution referred in Section 35

 

 

Note: The category of persons whose income is unconditionally exempt under various clauses of Section 10, and who are not mandatorily required to furnish their Return of Income under the provisions of Section 139, may use this form for filing return (for instance - Local Authority)

 

Forms Applicable

 

1. 

Form 26 AS

 AIS  (Annual information Statement)

Provided by:

Income Tax Department (It is available on e-Filing Portal:

Login > e-File > Income Tax Return > View Form 26AS)

Details provided in the form:

Tax Deducted / Collected at Source.

Provided by:

Income Tax Department (It can be accessed after logging on to Income Tax e-Filing portal)

 Go to e-filing portal > login > AIS

Details provided in the form:

  • Tax Deducted / Collected at Source
  • SFT Information
  • Payment of taxes
  • Demand / Refund

Other information (like Pending/Completed proceedings, GST Information, Information received from foreign government etc)

Note: Information regarding (Advance Tax/SAT, Details of refund, SFT Transaction, TDS u/s 194 IA,194 IB,194M, TDS defaults) which were available in 26AS are now available in AIS.

 

2. Form 3CA-3CD

Provided by

Details provided in the form

Taxpayer who is required to get their accounts audited by an Accountant u/s 44AB. To be furnished  one month before the due date for furnishing the return of income under sub-section (1) of section 139.

Report of Audit of Accounts and Statement of Particulars required to be furnished u/s 44AB of the Income Tax Act, 1961 

 

3. Form 3CB-3CD

Submitted by

Details provided in the form

Taxpayer who is required to get his accounts audited by an Accountant u/s 44AB. To be furnished one month before the due date for furnishing the return of income under sub-section (1) of section 139.

Report of Audit of Accounts and Statement of Particulars required to be furnished u/s 44AB of the Income Tax Act, 1961 

 

4. Form 10B & Form 10 BB

Submitted by

Audit Report in Form 10 B

Taxpayer who is required to obtain a report from an Accountant u/s 12A(1)(b) or u/s 10(23C) of the Income Tax Act, 1961, in the case of charitable or religious trusts or institution or any university or other educational institution or any hospital or other medical institution referred to in sub-clause (iv) or sub-clause (v) or sub-clause (vi) or sub-clause (via) of Section 10(23C)

  • If the total income of the trust or institution exceeds Rs.5 crore during the previous fiscal year.
  • In case a trust or institution receives any amount of foreign contribution. Even if the institution is not registered under section 12A or approved under section 10(23C), they must file form 10B.
  • In case any institution or trust has used any amount of its income outside India in the previous year.

Audit Report in Form 10 BB:

For all the other cases, Form 10BB shall be applicable.

 

 

 

5. Form 10-IEA , Form 10-IFA

Declaration Provided by

 Form 10-IEA

Taxpayer to Department

As the new regime has been made the default regime from FY 2023-24, the taxpayers who want to opt for paying taxes under the old regime have to file Form 10-IEA. This form is to be filed by taxpayers having income from business or profession.

Form 10-IFA

The Finance Act 2023 introduced a new tax scheme under section 115BAE for the resident co-operative societies engaged in the manufacturing or production of an article or thing. If a co-operative society opts for this scheme, then income will be taxable at a concessional rate. The resident co-operative society can exercise the option under section 115BAE(5) by furnishing Form No. 10-IFA

 

6. Form 10

Submitted by

Details provided in the form

Charitable or religious trust or institution or association

Statement furnished towards accumulation or setting apart of income by a charitable or religious trust or institution or association towards specific purpose. To be furnished at least two months prior to the due date for furnishing of return specified  under section 139(1).

 

7. Form 10A

Submitted by

Details provided in the form

Charitable or religious Trust or institution or association or company

Application for registration or provisional registration or intimation or approval or provisional approval of charitable or religious trust or institution or association

 

8. Form 10BD

Submitted by

Details provided in the form

Charitable or religious Trust

Statement towards particulars of donation received for a particular FY. To be furnished on or before 31st May of the FY immediately following the FY in which the donation is received

 

9. Form 9A

Submitted by

Details provided in the form

Charitable or religious trust

Application furnished for exercise of option under clause (2) of explanation to Section 11(1) where application of income falls short of 85% due to non-receipt and needs to be applied during the previous year in which it is received. The form shall be furnished before the expiry of time allowed u/s 139(1) for furnishing the return of income of the relevant Assessment Year.

 

10. Form 16A

Provided by

Details provided in the form

Deductor to Deductee

Form 16A is a Tax Deducted at Source (TDS) Certificate issued quarterly that captures the amount of TDS, Nature of Payments and the TDS payments deposited with the Income Tax Department

 

Tax Slabs for AY 2025-26

 

Tax rates of AOP / BOI / AJP are given below, however they are subject to further conditions described later. 

 

Note: Trusts which are not exempt from taxation as per relevant provisions and require approvals / registrations under the Income Tax Act, are assessed as AOP.

The Finance Act 2023 has amended the provisions of Section 115BAC w.e.f AY 2024-25 to make new tax regime the default tax regime for the assessee being an Individual, HUF, AOP (not being co-operative societies), BOI or Artificial Juridical Person. However, the eligible taxpayers have the option to opt out of new tax regime and choose to be taxed under old tax regime. The old tax regime refers to the system of income tax calculation and slabs that existed before the introduction of the new tax regime. In the old tax regime, taxpayers have the option to claim various tax deductions and exemptions.

In case of "non-business cases", option to choose the regime can be exercised every year directly in the ITR to be filed on or before the due date specified under section 139(1).

In case of eligible taxpayers having income from business and profession and wants to opt out of new tax regime, the assessee would be required to furnish Form-10-IEA on or before the due date u/s 139(1) for furnishing the return of income. Also, for the purpose of withdrawal of such option i.e. opting out of old tax regime shall also be done by way of furnishing Form No.10-IEA.

Form 10-IFA is applicable for Co-operative Society from Assessment Year 2024-25 onwards for opting for new tax regime. (notified vide Notification No. 83/2023 dated 29th September 2023).

Concessional tax for new manufacturing cooperative society

Section 115BAE provides for an option of concessional rate of taxation @ 15% for new manufacturing co-operative societies registered on or after 01.04.2023, subject to commencement manufacturing or production of an article or thing on or before 31st March 2024. However, once the option is exercised for any previous year, it cannot be withdrawn for the same or any other previous year.

Tax Rates under the two regimes for AOP (not being co-operative societies), BOI and Artificial Juridical Person are placed below:

 

Old Tax Regime

New Tax Regime u/s 115BAC

Income Tax Slab

Income Tax Rate

*Surcharge

Income Tax Slab

Income Tax Rate

*Surcharge

Up to ₹ 2,50,000    

Nil

Nil

Up to ₹ 3,00,000

Nil

Nil

₹ 2,50,001 - ₹ 5,00,000**

5% above ₹ 2,50,000

Nil

₹ 3,00,001 - ₹ 7,00,000**

5% above ₹ 3,00,000

Nil

₹ 5,00,001 - ₹ 10,00,000

₹ 12,500 + 20% above ₹ 5,00,000

Nil

₹ 7,00,001 - ₹ 10,00,000

₹ 20,000 + 10% above ₹ 7,00,000

Nil

₹ 10,00,001- ₹ 50,00,000

₹ 1,12,500 + 30% above ₹ 10,00,000

Nil

₹ 10,00,001 - ₹ 12,00,000

₹ 50,000 + 15% above ₹ 10,00,000

Nil

₹ 50,00,001- ₹ 100,00,000

₹ 1,12,500 + 30% above ₹ 10,00,000

10%

₹ 12,00,001 - ₹ 15,00,000

₹ 80,000 + 20% above ₹ 12,00,000

Nil

₹ 100,00,001- ₹ 200,00,000

₹ 1,12,500 + 30% above ₹ 10,00,000

15%

₹ 15,00,001- ₹ 50,00,000

₹ 1,40,000 + 30% above ₹ 15,00,000

Nil

₹ 200,00,001- ₹ 500,00,000

₹ 1,12,500 + 30% above ₹ 10,00,000

25%

₹ 50,00,001- ₹ 100,00,000

₹ 1,40,000 + 30% above ₹ 15,00,000

10%

Above ₹ 500,00,000

₹ 1,12,500 + 30% above ₹ 10,00,000

37%

₹ 100,00,001- ₹ 200,00,000

₹ 1,40,000 + 30% above ₹ 15,00,000

15%

 

 

 

Above ₹ ₹ 200,00,001

₹ 1,40,000 + 30% above ₹ 15,00,000

25%


*Note: The enhanced surcharge of 25% & 37%, as the case may be, is not levied, from income chargeable to tax under sections 111A, 112, 112A and Dividend Income. Hence, the maximum rate of surcharge on tax payable on such incomes shall be 15%, except when the income is taxable under section 115A, 115AB, 115AC, 115ACA and 115E. In case of an association of persons consisting of only companies as its members, the rate of surcharge on the amount of Income-tax shall be maximum 15% (applicable w.e.f AY 2023-24). 

 

***Note: Health & Education cess @ 4% to be paid on the amount of income tax plus Surcharge (if any) in both the regimes.

 

Tax liability of AOP / BOI depends on whether or not share of members of AOP / BOI are known. Accordingly, further applicable conditions are as follows:

 

Nature of AOP / BOI

AOP / BOI - Assessed

Member -Assessed

Share determined

Where income of none of the members exceeds the maximum amount, which is not chargeable to income tax (i.e., basic exemption limit), income of AOP / BOI shall be taxable at a rate applicable to an individual.

Income of AOP is assessed at Maximum Marginal Rate where income of any member of AOP / BOI exceeds the maximum amount which is not chargeable to income tax (i.e., basic exemption limit).

But if total income of any member of AOP / BOI is taxable at a rate higher than Maximum Marginal Rate, then income of AOP / BOI shall be chargeable to tax as follows:

  • Portion of income attributable to such member shall be taxable at such high rate as applicable to that member
  • Balance portion of income shall be taxable at the Maximum Marginal Rate of tax (i.e., 30% plus surcharge and HEC as applicable)

Share of profits received by members is exempt in the hands of the members

Share indeterminate or unknown

Income is assessed at Maximum Marginal Rate. However, if total income of any member is assessed at a rate higher than Maximum Marginal Rate, income of AOP / BOI is assessed at that higher rate

The share of income is exempt in the hands of the member

 

  Note: An AOP / BOI who’s adjusted total income exceeds ₹ 20 lakh shall be liable to pay Alternate Minimum Tax (AMT) at 18.5% of adjusted total income (plus surcharge and Health and Education cess as applicable), where the normal tax liability is less than 18.5% of adjusted total income.

 

 

Investments / Payments / Incomes on which I can get Tax Benefit

 

 

Following deductions will be available to a taxpayer opting for the New Tax Regime u/s 115BAC or u/s 115BAE:
    1. Section 24(b) – Deduction from Income from House Property on interest paid on housing loan:

Nature of Property

Purpose of loan

Allowable (Maximum limit)

Let Out

Construction or purchase of house property    

Actual value without any limit

    1. Tax deductions specified under Chapter VIA of the Income Tax Act

Section 80JJA

Deduction in respect of Profits and Gains from Business of Collecting and Processing of Biodegradable Waste

(subject to certain conditions)

 

100% of profits for 5 AY where the Gross Total Income of an Assessee includes any Profits and Gains derived from the Business of Collecting and Processing or treating of Biodegradable Waste

 

 

Tax deductions in the Old Tax Regime

  1. Section 24(b) – Deduction from Income from House Property on interest paid on housing loan & housing improvement loan. In case of self- occupied property, the upper limit for deduction of interest paid on housing loan is  ₹ 2 lakh. Interest on loan u/s 24(b) allowable is tabulated below:

Nature of Property

When loan was taken

Purpose of loan

Allowable (Maximum limit)

Self-Occupied

On or after 1/04/1999

Construction or purchase of house property                            

₹ 2,00,000

On or after 1/04/1999

For Repairs of house property          

₹ 30,000

Before 1/04/1999

Construction or purchase of house property    

₹ 30,000

Before 1/04/1999

For Repairs of house property 

₹ 30,000

Let Out

Any time

Construction or purchase of house property    

Actual value without any limit

 

 

 Tax deductions specified under Chapter VI-A of the Income Tax Act.
 

Section 80G

Deduction towards Donations made to certain funds, charitable institutions, etc.

Donation are eligible for deduction under the below categories:

Without any limit

100% deduction

50% deduction

Subject to qualifying limit

 ​

100% deduction

50% deduction

 

 

 





Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000/-.

 

 

Section 80GGA

Deduction in respect of certain donations for Scientific Research or Rural Development.

Donation are eligible for deduction under the below categories:

Research Association or University, College or other Institution for:

  • Scientific Research
  • Social Science or Statistical Research

Association or Institution for:

  • Rural Development
  • Conservation of Natural Resources or for afforestation 

PSU or Local Authority or an Association or Institution approved by the National Committee for carrying out any eligible project

Funds notified by Central Government for:

  • Afforestation
  • Rural Development

National Urban Poverty Eradication Fund as set up and notified by Central Government

 

Note: No deduction shall be allowed under this section in respect of donation made in cash exceeding ₹ 2000/- or if Gross Total Income includes income from Profit / Gains of Business / Profession.

 

Section 80GGC

Sum contributed to Political Party or Electoral Trust is allowed as deduction

(subject to certain conditions)

 

Deduction of total amount paid through any mode other than cash

 

Section 80IA

 

Undertaking engaged in Developing, Maintaining and Operating any Infrastructure Facility (only Indian Company), industrial parks (any Undertaking), any Power Undertaking, Reconstruction or Revival of Power Generating Plants (Indian Company) shall be entitled to claim deduction

(subject to certain conditions)

 

100% of profit for 10 consecutive AY falling within a period of 15 / 20 AY beginning with the AY in which Assessee develops / begins operating and maintaining infrastructure facility

(No deduction shall be allowed if development, operation, etc. started after specified dates for specified business)

 
 

 

Section 80IAB

 

Deduction in respect of Profits and Gains by an Undertaking or an Enterprise engaged in development of Special Economic Zone

(subject to certain conditions)

 

100% of profit for 10 consecutive AY out of 15 AY beginning from the year in which a Special Economic Zone has been notified by the Central Government

No deduction to an Assessee, where the development of Special Economic Zone begins on or after 1st April 2017

 
 

 

Section 80IB

Deduction towards Profits and Gains from specified business.

The deduction under this section is available to an Assessee whose Gross Total Income includes any Profits and Gains derived from the business of:

Industrial Undertaking including an SSI in J&K

Commercial Production and Refining of Mineral Oil

Processing, Preservation and Packaging of Fruits or Vegetables, Meat and Meat Products or Poultry or Marine or Dairy Products; Integrated Business of Handling, Storage and Transportation of Food Grains;

(subject to certain conditions) 

 

100% / 25% of profit for 5 / 10 / 7 years as per conditions specified for different types of undertakings

 

Section 80IBA

Profit and Gains derived from Developing and Building Housing Projects

 

100% of profit subject to various conditions specified

 

Section 80IC

Deduction in respect of certain Undertakings in Himachal Pradesh, Sikkim, Uttaranchal and North-Eastern states

(subject to certain conditions)

 

100% of profits for first 5 AY and 25% (30% for a company) for next 5 AY to manufacture or produce specified article or thing

 

Section 80IE

Deduction to certain Undertakings set up in North- Eastern states

(subject to certain conditions)

 

100% of profits for 10 AY subject to various conditions specified  

 

Section 80JJA

Deduction in respect of Profits and Gains from Business of Collecting and Processing of Biodegradable Waste

(subject to certain conditions)

 

100% of profits for 5 AY where the Gross Total Income of an Assessee includes any Profits and Gains derived from the Business of Collecting and Processing or treating of Biodegradable Waste

 

Section 80JJAA

Deduction in respect of Employment of New Workers / Employees, applicable to Assessee to whom Section 44AB applies

(subject to certain conditions)

 

30% of additional employee cost for 3 AY, subject to certain conditions

 

Section 80LA

Deduction for Income of Offshore Banking Units and International Financial Services Centre

(subject to certain conditions)

 

100% of specified income for 5 consecutive AYs, as per specified conditions

 

Page Last Reviewed or Updated: 02-Jan-2025