Advance Membership Fees: Non-Refundable Portion Taxable Upfront, Balance Over Service Period; No TDS on Credit Card Fees.

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....Income tax treatment of membership fees received in advance: The membership fees comprise a non-refundable portion and an advance amount for availing discounted services. The non-refundable portion is taxable upfront, while the advance amount is taxable on a deferred basis over the service period, unless there is evidence of a different revenue recognition pattern. The assessee's methodology of offering the entire amount to tax has been accepted by the Revenue authorities in previous years. Disallowance u/s 14A: No disallowance is required u/s 14A in the absence of any exempt income earned by the assessee. Interest paid on plot installments: The interest expenditure incurred on acquisition of a capital asset is not allowable as a deduction .........