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:
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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 |
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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)
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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
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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 |
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3. Form 3CB-3CD |
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4. Form 10B & Form 10 BB |
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5. Form 10-IEA , Form 10-IFA |
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6. Form 10 |
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7. Form 10A |
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8. Form 10BD |
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9. Form 9A |
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10. Form 16A |
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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 |
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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% |
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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:
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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:
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- 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 |
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- Tax deductions specified under Chapter VIA of the Income Tax Act
Section 80JJA |
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Deduction in respect of Profits and Gains from Business of Collecting and Processing of Biodegradable Waste (subject to certain conditions) |
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Tax deductions in the Old Tax Regime
- 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 |
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Before 1/04/1999 |
Construction or purchase of house property |
₹ 30,000 |
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Before 1/04/1999 |
For Repairs of house property |
₹ 30,000 |
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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 |
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Deduction towards Donations made to certain funds, charitable institutions, etc. Donation are eligible for deduction under the below categories:
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Section 80GGA |
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Deduction in respect of certain donations for Scientific Research or Rural Development. Donation are eligible for deduction under the below categories:
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 |
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Sum contributed to Political Party or Electoral Trust is allowed as deduction (subject to certain conditions) |
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Section 80IA |
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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) |
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Section 80IAB |
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Deduction in respect of Profits and Gains by an Undertaking or an Enterprise engaged in development of Special Economic Zone (subject to certain conditions) |
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Section 80IB |
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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:
100% / 25% of profit for 5 / 10 / 7 years as per conditions specified for different types of undertakings |
Section 80IBA |
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Profit and Gains derived from Developing and Building Housing Projects |
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Section 80IC |
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Deduction in respect of certain Undertakings in Himachal Pradesh, Sikkim, Uttaranchal and North-Eastern states (subject to certain conditions) |
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Section 80IE |
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Deduction to certain Undertakings set up in North- Eastern states (subject to certain conditions) |
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Section 80JJA |
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Deduction in respect of Profits and Gains from Business of Collecting and Processing of Biodegradable Waste (subject to certain conditions) |
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Section 80JJAA |
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Deduction in respect of Employment of New Workers / Employees, applicable to Assessee to whom Section 44AB applies (subject to certain conditions) |
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Section 80LA |
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Deduction for Income of Offshore Banking Units and International Financial Services Centre (subject to certain conditions) |
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