Illegal association (section 464)

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If an AOI/BOI carrying out any business activity for gain and no. of members in such association of person is beyond 100 members but not registered as company than it shall be called as illegal association.

  • Illegal association does not exist in the eyes of law so any legal actions can't be taken.
  • the income of Illegal association is taxable
  • There are exemtion to some entity like HUF, or the firms which are governed by their own laws as CA firms, CS associations etc.
  • If any illegal association created, than entire liability of that illegal association is the members personal liability and have to pay 1 lakh rupees as penality.

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