Filing of Income tax return by a Residents Welfare associati

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

02 February 2011 Any surplus generated by a residents welfare association is not chargeable to tax as it is exempt based on the 'Concept of Mutuality'. Is an RWA legally bound to file income tax return. (Source of income of the RWA is maintenance charges, club charges from members)

CA PARAS BAFNA

CA PARAS BAFNA (Expert)
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06 February 2011 As residents welfare association is not having any income, these are not legaly bound to file IT return.

CA Pradeep Kumar Rajput

CA Pradeep Kumar Rajput (Expert)
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26 February 2011 any amount received from the member is exempt income in the hand of RWA.....
and income received from the non member is liable too tax....
hence if income received from nonmember exceed the taxable limit then RWA liable to file the income tax return......

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VISWANIVAS

VISWANIVAS (Expert)
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11 January 2021 I am of the opinion that even a small RWA or AOA (AOP>Cat-2 society) with 20 flats and Monthly maintainance of Rs.1500.00 (20X12X1500=Rs.360000.00) is required to file return, as the income (though exempted “Concept of Mutuality”) exceeds basic exemption limits of Rs.2,50,000.00. Show the receipts and payments, show the surplus. The surplus is cash/bank/funds balance.