An Association of Persons (AOP) is an entity formed by two or more individuals with a common objective of generating income or profits. Under Section 2(31) of the Income-tax Act, 1961, an AOP or a Body of Individuals (BOI)—whether incorporated or not—is treated as a separate legal entity for taxation purposes.

Key Aspects of an AOP

✔ Registration – Formation and legal structuring of an AOP
✔ Taxation – Compliance with tax laws applicable to AOPs
✔ Auditing & Reporting – Maintaining financial records and meeting audit requirements
✔ Filing of Income Tax Returns – Ensuring timely filing of tax returns

Common Activities Conducted Through an AOP

AOPs are often formed for specific purposes, including:

🔹 Organizing one-time events like seminars, conferences, or exhibitions
🔹 Undertaking joint business ventures
🔹 Managing investment or real estate projects

Is Filing of Income Tax Returns Mandatory for AOPs?

Yes, every AOP/BOI must file an income tax return if its total income exceeds the basic tax exemption limit.

If you need expert assistance in setting up an Association of Persons (AOP) in Hyderabad, feel free to reach out to us:

📌 VPS & Associates
📍 Location: Hyderabad
📧 Email: team@vpsandassociates.com

Our team is here to guide you through the entire process with seamless legal and tax compliance support.