Principal of Mutuality - Income not liable to tax

[AnilKumar Lunawath]

Hi all, Assessee is AOP, All the members of AOP are specific business group persons forms the association, This association organise exhibition every year for the benefit of members and charge rental charges for stalls from its members, the members are deducting tds on this rental charges paid to association also.

Usually the income arising out of this exhibition activity is exempt due to the concept of mutuality but while filling ITR 5 kindly suggest me where to declare this exempted income and to get the TDS refund.

Eg. for co operative societies there is deductions under specific section 80P where we can specify the exempted income in ITR, any particular schedule available in this ITR 5 for declaring this exemted income, so that Form 26AS also get matched with income declared and it was further exempted by comcept of Mutuality

Kindly advice, Thanks

[Padmanathan KV]

Are members claiming expense of the rental charges paid to AOP in their income Tax returns?

AI Summary

Principle of mutuality: exempt association income from exhibition rentals, inquire where to declare and claim TDS refund. Principal of mutuality treats exhibition stall rentals charged by an AOP to its members as non-taxable reciprocal receipts; the issue is where to disclose such exempt income in ITR 5 and how to obtain refund of TDS deducted by members, noting cooperative-society provisions as a point of comparison and that whether members claim the rentals as expenses affects Form 26AS matching and refund prospects.