Taxbrain.in provides expert income tax return filing services for Association of Persons (AOP), Body of Individuals (BOI), Trusts, and Artificial Juridical Persons (AJP) for Assessment Year 2026-27. We handle ITR-5 and ITR-7 filings, audit compliance, regime selection, and all related forms using data from the Income Tax Act, 1961.
Entities Covered
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.
Applicable ITR Forms
- ITR-5: This form can be used by a Person being a Firm, Limited Liability Partnership (LLP), Association of Persons (AOP), Body of Individuals (BOI), Artificial Juridical Person (AJP) referred to in clause (vii) of Section 2(31), Local Authority referred to in clause (vi) of Section 2(31), Representative Assessee referred to in Section 160(1)(iii) or (iv), Cooperative Society, Society registered under Societies Registration Act, 1860 or under any other law of any State, Trust other than Trusts eligible to file Form ITR-7, Estate of Deceased Person, Estate of an Insolvent, Business Trust referred to in Section 139(4E), 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.
- 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 mandatorarily required to furnish their Return of Income under the provisions of Section 139, may use this form for filing return (for instance – Local Authority).
Essential Forms & Compliance
- Form 26AS / AIS (Annual Information Statement): Provided by Income Tax Department. Available on e-Filing Portal > Login > e-File > Income Tax Return > View Form 26AS. Details: 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 (previously in 26AS) are now in AIS.
- Form 3CA-3CD: Taxpayer required to get accounts audited u/s 44AB. Furnished one month before due date u/s 139(1). Report of Audit of Accounts and Statement of Particulars u/s 44AB.
- Form 3CB-3CD: Same as above for taxpayers audited u/s 44AB.
- Form 10B / Form 10BB:
- Form 10-IEA / Form 10-IFA:
- Form 10-IEA: Taxpayers with business/profession income opting for old regime (new regime default from FY 2023-24).
- Form 10-IFA: Resident co-operative societies opting for concessional 15% tax u/s 115BAE (new manufacturing co-ops registered post 01.04.2023, manufacturing started by 31.03.2024). Irrevocable once exercised.
- Form 10: Charitable/religious trusts – Statement for accumulation/setting apart income for specific purposes. Due 2 months prior to ITR u/s 139(1).
- Form 10A: Application for registration/provisional registration/intimation/approval of charitable/religious trusts/institutions/companies.
- Form 10BD: Charitable/religious trusts – Particulars of donations received. Due by 31st May following FY of donation.
- Form 9A: Charitable trusts – Option u/s 11(1) Explanation clause 2 where 85% application falls short.
- Form 16A: TDS Certificate from deductor – quarterly, shows TDS amount, nature of payments, deposit details.
Tax Slabs AY 2026-27
Disclaimer: Content provides overview/general guidance only. Refer Income Tax Act, Rules, Notifications for complete details.
Tax rates for AOP/BOI/AJP subject to conditions below. Trusts not exempt are assessed as AOP. New regime default u/s 115BAC (AY 2024-25 onwards) for AOP/BOI/AJP (non-co-op societies). Opt-out via ITR (non-business) or Form 10-IEA (business) by due date u/s 139(1).
Old vs New Regime Slabs (AOP/BOI/AJP non-co-op)
Surcharge:
Notes: Enhanced surcharge (25%/37%) not on 111A/112/112A/Dividend (max 15%). AOP with only company members: max 15% surcharge (AY 2023-24+). Health & Education Cess: 4% on tax + surcharge.
AOP/BOI Tax Liability Rules
Tax liability depends on member shares:
AMT: 18.5% on adjusted total income (>₹20L) + surcharge/cess if normal tax lower.
Deductions: New Regime (u/s 115BAC/115BAE)
- Section 24(b): Let-out house property – interest on housing loan (actual, no limit).
- 80JJAA: 30% additional employee cost (3 years, u/s 44AB assessees).
- 80JJA: 100% profits from biodegradable waste business (5 years).
Deductions: Old Regime
Section 24(b) – House Property Interest:
| Property | Loan Date | Purpose | Max Deduction |
|---|---|---|---|
| Self-Occupied | Post 01.04.1999 | Construction/Purchase | ₹2,00,000 |
| Repairs | ₹30,000 | ||
| Pre 01.04.1999 | Construction/Purchase/Repairs | ₹30,000 | |
| Let-Out | Any | Construction/Purchase | Actual |
Chapter VI-A:
- 80G: Donations (100%/50%, qualifying limit; no cash >₹2,000).
- 80GGA: Scientific research/rural development donations (100%/50%; no cash >₹2,000; no business income).
- 80GGC: Political party/electoral trust (non-cash).
- 80IA/IAB/IB/IBA/IC/IE/JJA/JJAA/LA: Infrastructure, SEZ, housing, specified undertakings, waste business, employees, offshore units (100%/25-30% profits for specified years).
Why Taxbrain.in for AOP/BOI/Trusts/AJP
- Complete ITR-5/ITR-7 filing with all forms (26AS, 3CA-3CD, 10B/10BB, 10-IEA, etc.).
- Old/new regime optimization, audit compliance, PAN/TAN handling.
- Pune-based service for India-wide e-filing, refunds, notice resolution.
Contact Taxbrain.in today for seamless AY 2026-27 compliance.
FAQs
Q: Which ITR for AOP/Trust?
A: ITR-5 for firms/AOP/BOI/AJP/non-charitable trusts; ITR-7 for 139(4A-4D) entities.
Q: New regime default? How to opt old?
A: Yes u/s 115BAC. Non-business: via ITR; business: Form 10-IEA by 139(1) due date.
Q: AOP tax if member income high?
A: MMR (30%) or member’s higher rate; shares exempt in members.
Q: Trust audit triggers?
A: Income >₹5Cr, foreign funds, overseas spend (Form 10B/10BB).
Q: Surcharge caps?
A: Max 15% on dividends/STCG; AOP-companies: 15% max.