*Taxability of the Resident Welfare Association*

The Resident Welfare Association's only source of income in both years was interest from fixed deposits totaling less than Rs. 8 lacks in both years.
AOP filed an IT return for the AY 2020-21 and 2021-22, paying 30% tax + cess on interest income.
Now received Intimation from the IT department that a 37% surcharge has been imposed on the 30% tax.
Querry?
1. Is interest income exempt from taxation under the Mutuality concept?
2. Charging a 37% Surcharge is valid in law.
3. Filing rectification on the e-fing website will result in a favorable outcome, ie, surcharge waiver?
4. Is there any way to avoid paying the surcharge?
I really anticipate hearing from you.