# Association of Persons (AOP) and Body of Individuals (BOI)

## Association of Persons (AOP)

Formed when persons combine together for the promotion of a joint enterprise, where they do NOT constitute a partnership firm in law.
Essential conditions:
There must be two or more persons.
They must join for a common purpose or action.
The object must be to produce income.
Mere joint receipt of income is NOT enough — there must be active intention to produce income.
Members of an AOP can be any type of person (Individual, HUF, Company, Firm, etc.).

## Body of Individuals (BOI)

Denotes a status of persons — typically executors, trustees or persons who merely receive income jointly.
They are assessable in like manner and to the same extent as beneficiaries individually.
A BOI can have only individuals as its members (unlike AOP).

## Distinction

Feature	AOP	BOI
Members	Any person (individual, company, firm etc.)	Only individuals
Common Object	Must be to PRODUCE income	Mere joint receipt of income
Voluntary association	Yes — for common enterprise	May be by operation of law (e.g., trustees)

Worked example

### Example 1

Example (AOP): Two construction companies join hands for a specific project but do not form a partnership. They form an AOP.

### Example 2

Example (BOI): Three brothers jointly inherit a property and receive rent jointly. They constitute a BOI.

### Example 3

Example (Not AOP): Three flat owners receive common maintenance charges — mere receipt of income does NOT make them an AOP.

⚠️ Common exam mistakes

Treating every joint receipt of income as AOP — AOP requires intention to PRODUCE income.
Including non-individual members in a BOI — BOI consists of individuals only.
Confusing AOP with partnership firm — if it's a registered partnership, it's a Firm, not AOP.
Forgetting that an AOP/BOI is taxed as a separate person.

Reference: Section 2(31)(v)

Now that you've read this — what's next?

Move from understanding → mastery in 3 clicks. Each option below picks up from this lesson's topic.

AOP and BOI

Worked example