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,
Insurance Agents' Association Faces Tax Dilemma: Mutuality Principle May Affect Taxable Income on Bank Interest and Subscriptions. An association of insurance agents collects subscriptions for members' welfare and holds bank deposits, resulting in tax deducted at source (TDS) on interest income. The association's excess income over receipts totals 55,000, including 28,500 as bank interest. A respondent suggests that if the principle of mutuality applies, the taxable income would be 28,500. Otherwise, the taxable income could be 55,000 or as determined by the computation of income. The association possesses a Permanent Account Number (PAN). (AI Summary)
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