The Resident Welfare Association's only source of income in both years was interest from fixed deposits totaling less than Rs. 8 lacks in both years.
AOP filed an IT return for the AY 2020-21 and 2021-22, paying 30% tax + cess on interest income.
Now received Intimation from the IT department that a 37% surcharge has been imposed on the 30% tax.
Querry?
1. Is interest income exempt from taxation under the Mutuality concept?
2. Charging a 37% Surcharge is valid in law.
3. Filing rectification on the e-fing website will result in a favorable outcome, ie, surcharge waiver?
4. Is there any way to avoid paying the surcharge?
I really anticipate hearing from you.
1. No.
2. Yes. at MMR, when shares of individual member is unknown.
3. Can be, if the assessment of AOP can be rederived.
4. Rectification with respect to known shares of each member.
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