What is the full form of BOI in income tax?
The BOI Full Form in Income Tax is Body of Individuals. The Indian Income Tax Act, 1961, recognizes various entities for tax purposes. One such category is a Body of Individuals (BOI). This article delves into the concept of BOI, explaining its formation, tax implications, and key aspects to consider.
What is a Body of Individuals (BOI)?
Several individuals work together to produce money as a Body of Individuals. Separate BOI from Association of Persons. Both need teamwork, but one difference:
Key BOI traits:
NO registration or documentation required for BOIs. Actions and revenue make them a separate tax entity. BOIs may not profit like AOPs. A profitable company must pay income tax. An agreement or contribution determines BOI revenue for members.
BOIs are taxed individually under Income Tax Act Section 2(31). BOI pays no tax on fixed and determinable member income shares. Members pay income tax per tax slab. In the absence of income sharing, the BOI taxes the full income. BOI members get tax money.
Important BOI Info:
BOIs with uncertain income must file an ITR for the association. Use ITR-2 if you work or own a business. The BOI may be audited if its income exceeds the Tax Department’s limit. BOIs, especially those with ambiguous revenue, must preserve precise income and expenditure records.