Income Tax Return RWA

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This discussion addresses whether a Residents' Welfare Association (RWA) with 70 kothis, reporting receipts of ₹638,243 and expenses of ₹580,664 for FY 2023-24, is required to file an income tax return. The consensus is yes, primarily because the gross receipts exceed the basic exemption limit. Filing is necessary to demonstrate any potential tax exemptions or deductions, even if no tax is ultimately payable.

Sachin Kumar

Sachin Kumar (Querist)

27 December 2024 We are a Residents' Welfare Association (RWA) comprising 70 independent kothis. Our financial records for FY 2023-24 show receipts of ₹638,243 and expenses of ₹580,664.
Are we required to file an income tax return ?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

27 December 2024 Yes...

Sachin Kumar

Sachin Kumar (Querist)

27 December 2024 Could you please explain the reason for filing a return? there is no concept of a basic exemption limit in the case of a Resident Welfare Association (RWA)?

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

27 December 2024 Even if an association does not have taxable income due to deduction available, but as the gross receipts are above the basic exemption limit; it is necessary for the RWA to prove this, which is possible only with a Income Tax return filing.

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