Income tax on association of persons
This query is : Resolved
09 June 2015
Is the income of (AOP)association of persons
charging maintenance charges from shops in mall exempt according to the mutuality concept?
What conditions should be fulfilled to apply mutuality concept? If some shops are on rent and maintenance charges are paid by the tenant to the association, whether they will also be covered under mutuality concept or not?
charging maintenance charges from shops in mall exempt according to the mutuality concept?
What conditions should be fulfilled to apply mutuality concept? If some shops are on rent and maintenance charges are paid by the tenant to the association, whether they will also be covered under mutuality concept or not?
09 June 2015
if they are renting and earning income then it will be taxable income.
09 June 2015
All the shops have separate owners so rental income is earned by shop owners and not by association but maintenance charges are paid by tenants to the association so I want to ask whether maintenance income can be covered under mutuality principle on the basis of which the income can be exempt.
09 June 2015
no since it is paid by the tenants and not borne by the onwners....
09 June 2015
So only the maintenance expenses paid by owners will be covered under mutuality concept and exempt under income tax.
09 June 2015
yes those which are paid for mutual benefit by the owners.
09 June 2015
you are welcome deepak................
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