What we do
Our work in this practice group is structured around the records, deadlines, and decisions involved:
- Clear documentation of the BOI’s purpose and objectives.
- Defined rights, duties, and responsibilities of individual members.
- Proper documentation of member contributions and sharing arrangements.
- Clear management and decision-making procedures.
- Defined provisions for admission, retirement, or changes in membership.
- Better clarity regarding accounting and taxation responsibilities.
- Reduced risk of disputes caused by unclear member arrangements.
How the engagement works
A Body of Individuals is generally governed by the terms agreed between its members together with applicable provisions of the Income-tax Act, 1961, the Indian Contract Act, 1872, and other laws relevant to its activities. A BOI is distinct from an Association of Persons (AOP), although both are recognized for tax purposes under the Income-tax Act. The tax treatment depends on the constitution of the BOI, determination of member shares, income, and other applicable provisions. PAN, income-tax return filing, GST, accounting, audit, and other statutory requirements may apply depending on the BOI’s activities and circumstances.
Scenario 1: Two or more individuals want to jointly undertake a specific commercial, investment, development, or other activity.
Scenario 2: Individuals want to collaborate on a project while formally documenting their contributions and income-sharing arrangements.
Scenario 3: Members want a written framework defining their management responsibilities and decision-making authority.
Scenario 4: An existing informal group of individuals wants to formalize its financial and operational arrangements through a BOI deed.
Scenario 5: Individuals require professional assistance in structuring a BOI deed with appropriate accounting, taxation, admission, retirement, and dissolution provisions.
BOI Structure Consultation
We understand the members, proposed activity, objectives, contributions, management structure, income-sharing arrangement, duration, and other requirements before drafting the deed.
Objectives & Scope Drafting
We define the purpose, objectives, permitted activities, powers, operational scope, and other relevant matters of the BOI.
Member Rights & Responsibilities
We draft provisions covering member contributions, responsibilities, voting rights, decision-making, management powers, duties, and obligations.
General questions
01What is a BOI?
A Body of Individuals (BOI) is an association of individuals who come together for a common purpose or activity. Its tax treatment is governed by the applicable provisions of the Income-tax Act and depends on the specific constitution and circumstances of the BOI.
02What is a BOI deed?
A BOI deed is a written agreement between the individual members that records the purpose of the association and establishes their rights, responsibilities, contributions, management powers, income-sharing arrangements, and other terms.
03What should a BOI deed contain?
A BOI deed may include the name and objectives of the BOI, member details, contributions, income or profit-sharing arrangements, management and voting provisions, accounting, admission and retirement provisions, dispute resolution, amendment, and dissolution provisions.
04What is the difference between BOI and AOP?
A BOI consists specifically of individuals, whereas an AOP can be formed by persons that may include individuals and other eligible entities depending on the circumstances. The tax treatment of both is determined under the applicable provisions of the Income-tax Act.
05Can a BOI have companies as members?
A Body of Individuals is specifically associated with individual members. If entities are intended to participate in the arrangement, the appropriate legal and tax structure should be evaluated before establishing the association.
06How is a BOI taxed?
The tax treatment depends on factors including the determination of members’ shares, the BOI’s income, the status of its members, and the applicable provisions of the Income-tax Act. The specific tax position should be evaluated based on the proposed arrangement.
07Does a BOI need PAN?
A BOI generally requires PAN where it is required to comply with income-tax or other statutory requirements. The exact requirement depends on its activities, income, and applicable tax provisions.
08Can you draft a customized BOI deed?
Yes. We can prepare a customized BOI deed based on the members, purpose, contributions, income-sharing arrangement, management structure, duration, and other requirements of the proposed association.
