Income Tax is a direct tax. All the persons required to compute their taxable income and the tax by following the procedure laid down in the income tax law. The term ‘person’ has defined by Sec.2(31) according it includes individuals, Partnership firms, companies, co-operative societies, Association of Persons(AOP) and Body of Individuals(BOI) etc., The AOP/BOI will be considered as a person whether or not incorporated under any law. Besides they are deemed persons whether they have profit motive or not. Like other persons, the AOP/BOI shall also compute their tax liability in the current year and pay the same. This study the procedure for determination of taxable income and income tax liabilities of such AOP and BOI.