Hello
I have a query related to taxation of welfare Association
1) interest on corpus fund deposit
2) interest & penality on non/delay payments received from members
shall I treated above as income and taxable in the hands of association.
my view is
1)corpus fund is an capital in nature, interest earned from that deposit is also added to capital shall not treated as revenue item hence it is not treated as income, please correct me if I am wrong.
2) I don't know how to deal please suggest.
It's urgent
Thank you
Hlo, In my opinion, income from corpus fund can only use for the purpose for which it is raised. So it cannot treat it as income of welfare association.
Interest and Penality will be the income of welfare association.
CAclubindia
