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Residential welfare association

Anitha (Articles) (121 Points)

03 August 2016

Hi to everyone,

kindly clarify my doubt regarding RWA.

Residential welfare association earning interest from Banks is taxable at what rate? slab or 30%

Thanks in advance

Anitha

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6 Replies

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177891 Points)
Replied 04 August 2016

As per AOP

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Anitha (Articles) (121 Points)
Replied 04 August 2016

As per Aop it is based on determinate or indeterminate share of members.

But in this no share to member. Can u clear my doubt

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177891 Points)
Replied 04 August 2016

if Income received by RWA from Non Member exceeds the taxable limit then only RWA is liable to file the Income Tax Return in Form ITR-5. Most of the RWAs got TDS deducted on interest income from banks thus they should file ITR to claim refund of their TDS dues. Tax rates applicable to AOP are same as that of applicable to Individuals.

So... At slab rate only.

Anitha (Articles) (121 Points)
Replied 04 August 2016

Tq Sir, I read somewhere like taxable in income of RWA should be taxed at max marginal rate.

Dhirajlal Rambhia (SEO Sai Gr. Hosp.) (177891 Points)
Replied 04 August 2016

Yes, both concept are existing. But check: taxguru.in/income-tax/taxability-resident-welfare-associations-income-tax- act.H T M L