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Maximum marginal tax rate

Mageshwaran Ganesan (34 Points)

21 September 2019

AOP taxed at 30% flat rate or tax at individual maximum tax rate after considering 2.5 lakhs exemption limit.

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10 Replies

CS GURVINDER SINGH (Company Secretary) (355 Points)
Replied 21 September 2019

As per Individual, .i.e. after considering 2.5 lakh exemption

2 Like

Mageshwaran Ganesan (34 Points)
Replied 21 September 2019

Thanks for the clarification gurvinder singh

Kapadia Pravin (17249 Points)
Replied 21 September 2019

What is sub-status of AOP
What type of AOP it is

Mageshwaran Ganesan (34 Points)
Replied 21 September 2019

Resident welfare association

Miss Mansi Bhojani (Practicing Chartered Accountant) (1693 Points)
Replied 22 September 2019

The tax slabs as applicable to individuals shall apply to AOP'S.

1 Like

Kapadia Pravin (17249 Points)
Replied 22 September 2019

RWA mean it's Co-operative Hsg society.
seperate rates are there .

Income Tax Slabs/ Rates for Co-operative Societies (FY 2018-19/ AY 2019-20)

Total Income (Rs.)Income Tax Slab/ RateUpto 10,000 10% of Total Income
10,001 to 20,000 Rs. 1,000 +20% Total Income Above 20,000 Rs. 3,000 +30%

Surcharge @ 12% in cases where total income exceeds Rs. 1 crore

Suresh Thiyagarajan (Student) (3986 Points)
Replied 22 September 2019

1. Two types of mutual concerns can be formed for flat members. One is the Resident Welfare Association(RWA) and the other one is Co-operative Housing Society.
2. In the case of RWA, it will be treated as AOP and registration can be done for the same as AOP as per Income tax act. In this case, it will be charged to tax considering basic exemption limit of Rs. 2.5 lakhs and so on and a surcharge of 10 % for income excess of Rs. 50 lakhs and 15% for income in excess of Rs. 1 crore.
3. If the same is registered as Co-operative Housing Society (registration is must fall under this category) then tax will be charged as per co operative society @ 30% in excess of Rs. 20,000 and surcharge @ 12% in excess of Rs.1 crore.
Please correct me if the above solution has an alternative view.

1 Like

Kapadia Pravin (17249 Points)
Replied 22 September 2019

A RWA has to be registered under the Societies Registration Act as a society.

You will need to frame your bye laws, etc. and then apply to the concerned registrar of societies with the requisite documents for registration

Though in ITR status is AOP but sub-status is co-operative society.

And there are seperate income tax slabs for co-operative Society (as per my above reply).

Mageshwaran Ganesan (34 Points)
Replied 26 September 2019

Thanks all for your input. In my case our association is registered under tamilnadu society registration act 1975.

External auditor filed assess as AOI status paid income tax flat 30%.

My view is to claim basic exemption limit of 2.5 lakhs.