Question ID :
A Resident Welfare Association (RWA} having 120 Flat Owners, The RWA is registered with the Sub Registrar of Societies. The RWA is earning Interest on FDR and TDS is deducted thereon. My questions are as follows:
1. The Members contribution is not taxable due to Concept of Mutuality. So, I have prepared a Maintenance account separately, the surplus is transferred to Members Fund.
2. The Bank Interest Rs. 3 lac ,is Taxable. So I have prepared a separate Income and Expenditure account and the surplus is transferred to Members Fund.
3. I have prepared ITR Form 5. Marked the RWA as Registered Society. The same is giving basic exemption of Rs.2.50 lacs. And Taxing the rest as per the slab Rates.
4. The Members Share is indeterminate, if I mention the same, it asks Rates of Taxation of the Members. All Members are taxable at MMR, i.e. 30%. In that case its taxing the RWA Income at 30% and not giving basic exemption of Rs.2.5. lacs.
5. Whether ITR filing is necessary for the RWA? What would be the position if TDS is not deducted?
6. Whether the RWA can give Form 15G to the Banker for no deduction of TDS? If yes, the Bank may upload figure for Interest on which TDS is not deducted due to Form 15G, it will reflect in the Form 26AS of the RWA later on.
7. If anyone is having more literature on RWA, please provide me @ firstname.lastname@example.org.
Aug 08, 2020