Section 40(ba) - Payment of interest, salary etc. made by AOP to its members - Income Tax - Ready Reckoner - Income Tax

Section 40(ba) : Payment of Interest, Salary, Bonus, Commission, or Remuneration made by AOP/BOI to its Members In the case of a AOP/ BOI any payment of interest, salary, bonus, commission or remuneration made by such AOP/BOI to any of its member is disallowed. Section 40(ba) does not permit deduction in the hands of AOP of any interest, salary, bonus, commission or remuneration paid to member of AOP. Note: Interest paid to member less Interest received from such member is to be disallowed. If member in individual capacity, then interest paid in representative capacity be allowed. If member in representative capacity, then interest paid in individual capacity be allowed. Salary paid in any capacity is to be disallowed.