BOI in a PAN card means "Body of Individuals". It is a group of individuals who join together for a common purpose and are treated as a single "person" for income tax. The letter B as the fourth character of a PAN tells you that the holder is a BOI, just as A marks an Association of Persons (AOP), C a company and P an individual.
What is a Body of Individuals (BOI)?
The income tax law counts an AOP or a BOI as a "person", whether or not it is incorporated, and even if it was not formed to earn income. So a group of people who hold property together, run a joint activity or receive income jointly may have to get its own PAN and file its own return, separate from the members.
Common examples of a BOI include:
- Two or more individuals who jointly own a property and earn rent from it without forming a firm.
- A group of individuals running a joint activity under a simple written agreement.
- Co-heirs who receive income together from an inherited asset, where the facts show they act as one body.
Whether a group is a BOI depends on the facts of each case: how it was formed, who the members are and how the income is earned and shared. This is not an automatic label, so get the facts checked before you apply for a PAN.
What does the letter B mean in a PAN?
A PAN is a ten-character code. The first three characters are an alphabetic series, the fourth character shows the status of the holder, and for a non-individual the fifth character is the first letter of its name. The last five are four numbers and a check letter.
| Fourth PAN character | Status of the PAN holder |
|---|---|
| P | Individual |
| C | Company |
| H | Hindu Undivided Family (HUF) |
| F | Firm / LLP |
| A | Association of Persons (AOP) |
| B | Body of Individuals (BOI) |
| T | Trust |
If your PAN carries the wrong status letter, the return form, tax rates and TDS treatment can all go wrong. A PAN with the wrong status has to be corrected through the PAN change request process.
What is the difference between BOI and AOP?
The tax department treats AOPs and BOIs almost the same way for assessment. The main practical differences are who the members can be and the PAN letter.
| Point | Body of Individuals (BOI) | Association of Persons (AOP) |
|---|---|---|
| Members | Individuals only | Individuals and others, such as companies, firms or HUFs |
| PAN status (4th character) | B | A |
| ITR form | ITR-5 | ITR-5 |
| Special surcharge rule | — | An AOP made up only of companies has its surcharge capped at 15% |
| Member's share of taxed income | Exempt in the member's hands | Exempt in the member's hands |
Non-exempt trusts that need approval or registration under the Act are also assessed as an AOP, which is why trusts are a separate topic. For a group that includes companies or firms, see our page on Association of Persons (AOP) registration.
How is a BOI taxed?
For assessment year 2026-27 (financial year 2025-26), the Income-tax Act, 1961 applies. From tax year 2026-27 (starting 1 April 2026), the Income-tax Act, 2025 applies, so check the new section numbers for later years.
New regime is the default. Since AY 2024-25, the new tax regime under section 115BAC is the default for an AOP (other than a co-operative society), a BOI and an artificial juridical person. A BOI without business income can choose the old regime in its return each year. A BOI with business income has to file Form 10-IEA to opt out.
The new regime slabs for AY 2026-27 published by the department are:
| Total income | Tax rate |
|---|---|
| Up to the limit of ₹4 lakh | Nil |
| Above ₹4 lakh up to ₹8 lakh | 5% |
| Above ₹8 lakh up to ₹12 lakh | 10% |
| Above ₹12 lakh up to ₹16 lakh | 15% |
| Above ₹16 lakh up to ₹20 lakh | 20% |
| Above ₹20 lakh up to ₹24 lakh | 25% |
| Above ₹24 lakh | 30% |
Surcharge applies at higher income levels (capped at 25% under the new regime), and Health and Education Cess of 4% is added in all cases.
When the maximum marginal rate applies. The share of each member decides how the BOI is taxed:
- Shares are known (determinate): if no member's own income is above the basic exemption limit, the BOI is taxed at the normal slab rates. If any member's income crosses that limit, the BOI is taxed at the maximum marginal rate (30% plus surcharge and cess).
- Shares are not known (indeterminate): the BOI's income is taxed at the maximum marginal rate.
- If a member's income is taxed at a rate higher than the maximum marginal rate, that higher rate can apply to that member's share.
Under the old regime, the department's guidance also mentions Alternate Minimum Tax at 18.5% of adjusted total income for an AOP or BOI whose adjusted total income is above ₹20 lakh, where normal tax is lower. AMT does not apply when the new regime is chosen.
How do you get a PAN for a BOI?
PAN for non-individual Indian entities, including AOPs and BOIs, is now applied for in Form 94 under the Income-tax Rules, 2026 (it replaces the old Form 49A). The form is signed by the BOI's authorised signatory. The department lists these documents for a BOI formed in India:
- A copy of the agreement forming the BOI; or
- A registration certificate number issued by a Charity Commissioner, Registrar of Co-operative Societies or any other competent authority; or
- Any other Central or State Government document that establishes the BOI's identity and address.
A clear written agreement naming the members, their shares and the purpose of the BOI makes the PAN application, the bank account and later tax filings much simpler.
Which return does a BOI file, and by when?
A BOI files ITR-5, electronically. If its accounts must be audited under section 44AB, the return is filed with a digital signature. A BOI that must file under sections 139(4A) to 139(4D), for example as a charitable body, uses ITR-7 instead. For AY 2026-27, audit cases have an extended due date; see our guide on the ITR due date for audit cases AY 2026-27.
How Indian Salahkar can help
Indian Salahkar works closely with Chartered Accountants, Company Secretaries and Advocates to help groups in Agra and across India decide whether they are a BOI or an AOP, draft the agreement, apply for the PAN and file returns. See our Body of Individuals (BOI) registration page or contact our team to discuss your case.
Frequently asked questions
What does BOI mean in a PAN card?
BOI means Body of Individuals. A group of individuals who come together for a common purpose is treated as a separate 'person' under the Income-tax Act. Its PAN has the letter B as the fourth character.
What is the difference between BOI and AOP in PAN?
Both are taxed in a similar way. The PAN shows the status: B in the fourth place for a Body of Individuals and A for an Association of Persons. An AOP can have members such as companies or firms, while a BOI is made up of individuals.
Which ITR form does a BOI file?
A BOI files ITR-5, the same form used by firms, LLPs and AOPs, unless it is required to file under sections 139(4A) to 139(4D), in which case ITR-7 applies. The return must be filed electronically.
Which documents are needed to get a PAN for a BOI?
The tax department accepts a copy of the agreement forming the BOI, or a registration certificate issued by a competent authority, or another Central or State Government document showing its identity and address.
Is a member's share of BOI income taxed again?
When the BOI itself has paid tax on its income, the department's guidance says a member's share of that income is exempt in the member's hands. Members should still report it in their own returns as the form requires.
Sources: incometax.gov.in · incometaxindia.gov.in · incometaxindia.gov.in · incometaxindia.gov.in
General information, not professional advice. Rules change — check the current position before acting.
