Section 310
Section 310: is a member's share taxed again in their own hands?
Section 310 stops the same income being taxed twice - once in the hands of the association of persons (AOP) or body of individuals (BOI), and again in the hands of the member. As a rule, a member's share (computed under Section 309) escapes further income tax, except where the AOP/BOI itself paid no tax on that income.
General rule: no further tax on the member
Income-tax is not payable by an assessee who is a member of an AOP/BOI in respect of his share in the AOP/BOI's income, computed under Section 309 - except in the situation described below.
Exception: where the AOP/BOI itself paid no tax
Where no income-tax is chargeable on the total income of the AOP/BOI itself, a member's computed share is chargeable to tax as part of that member's total income.
Where no tax is payable by the member under the general rule
If, under the general rule, no income-tax is payable by the member: and the AOP/BOI is chargeable to tax on its total income at the maximum marginal rate or a higher rate under any provision of the Act, the member's computed share is not included in his total income; in any other case, the member's computed share does form part of his total income.
Frequently asked questions
If an AOP already paid tax on its income, does a member pay tax again on their share?
Generally no - Section 310(1) exempts a member's share (as computed under Section 309) from further tax, except in the specific case in Section 310(2) where the AOP/BOI itself was not chargeable to tax on its total income.
Does a member's tax-free share still need to be reported anywhere?
Section 310(3) distinguishes: if the AOP/BOI was taxed at the maximum marginal rate or higher, the member's share is excluded from his total income; otherwise, it is included in the member's total income even though the AOP/BOI already bore tax on it.
Related sections
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Get help with AOP/BOI member taxationLast updated 9 September 2026