Income Tax on Association

[MOHAMED YACOOB SHARIFF]

One LIC Agents association is collecting the subscription for the welfare of agents, and it has bank deposits in bank, for which the bank is deducing the TDS,  the excess of income over receipts shows Rs.55000/- (including the interest from bank of Rs.28500)

Now what is the taxable income?, it has PAN,  

[Rama Krishana]

If the principal of mutuality applied in your case, the taxable income is ₹ 28,500/- and if not the taxable income may be ₹ 55,000/- or otherwise as per the computation of income.

AI Summary

Principle of mutuality determines taxable income; when it applies, only fund interest is taxed for the association. Application of the principle of mutuality governs taxable income: if mutuality applies, taxable income is limited to the bank interest component; if it does not apply, taxable income may be the full excess of income over receipts or another amount as determined by normal income computation.