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VINOD KUMAR AGARWAL

Category : TAXATION..,

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April 27, 2018 3:44 am

We are resident welfare society of 24 flats (registered)

We collect maintenance charges from each flat every month to provide the basic common services like Lift,Generator, security and cleaning etc.

We have some Fixed Deposits in a commercial bank on which we earn around Rs.1 lac per annum as in...

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Amlan Dutta

Please find pointwise replies to your query as follows

1. What is our profit . In my view whatever interest we earn as bank interest (Rs. 1 Lac) should be our profit.

Answer 1.) Interest income from bank and income from non members will add to your income
(Check detailed note below ).....

2. Suppose ...

April 30, 2018

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Amlan Dutta

Resident welfare association in other words also called as Apartments owners association can be categorised as Association of person(AOP) person identity. For AOP/BOI person, the principle guiding taxation revolves around concept of Mutuality i.e if the contributors of the fund and the beneficiaries of the fund are similar , then complete tax exemption is given to the funds/surplus funds to which the concept of Mutuality applies. This means that there is no scope for individual profits or gains
Let us make it clear with an example -
Think about the maintenance collected from members (residents are referred to as members). It is collected by the members for the benefit of the members, so there is no question of individual gain i.e The treasurer is not earning or joint secretary is not becoming rich by collecting maintenance …whatever maintenance is left over stays in the association (entity) bank account and attracts interest
Say, maintenance is 3000 Rs per month for 100 members and so total maintenance collected is 3 lakh rupees. Now say, the building has engaged services of a third party (which covers LIFT AMC ) etc and the total cost per month is amounting to 2.8 lakhs
The total funds are kept in a savings account. …now the whole surplus of the funds balance is exempt. Likewise the corpus collected also follows the mutuality concept

In a residential welfare association, the following things are exempt from tax
1.) Contribution from members (Maintenance, corpus etc )
2.) Interest earned from co-operative banks (However if account is kept with private banks or other financial bodies , then the amount attracts tax which can always be claimed back by filing refund interest income)
3.) Dividend
4.) Rentals received from members for utilising facilities

1.) Interest earned from banks other than co-operative banks
2.) Rental income from advertisement/Hoardings
3.) Rental income from Mobile/cable towers etc
4.) Rental income from Non Members for utilising facilities

RWA can give form 15 G if total taxable income below threshold levels
If income below threshold levels and TDS has already been deducted, then it can be claimed back while filing ITR

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April 30, 2018

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Amlan Dutta

April 30, 2018

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Kishalay Chattejee

Category : Income t..,

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April 26, 2018 9:27 pm

FY 2018-19 AY 2019-20 surcharged is applicable to whom & how much percentage and amount

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Amlan Dutta

Surcharge is 10 percent of income tax when taxable income is between 50 lakhs to 1crore and 15 percent of income tax when total income exceeds 1cr

April 26, 2018

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Pradeep

Category : Section ..,

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April 26, 2018 6:46 pm

Sir, how to know and whether my application for condonation of delay accepted?

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Amlan Dutta

Under status of filed returns,.you can check status

April 26, 2018

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Charanjit singh jassal

Category : Income t..,

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April 26, 2018 5:14 pm

If house hold lady is doing beauty parlour or running boutique or doing tution work can file ITR 1 by showing income under other sources

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Amlan Dutta

If none of these are are on regular basis and done on random basis , then yes you can declare it as other sources but if the activity is done on a regular basis from which the income is derived , then you need to show it as income from business only ...also note , that if the services etc cross th...

April 26, 2018

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