Raja Sekaran 01 July 2020

Tax on residents welfare association

Dear Experts,

Actually I have filed ITR-5 form for residents welfare association for the FY 2018-19 but now I got notice for that pay the tax on surplus amount (excess income over expenditure).

But the association amount received from residents only.

They are not let out to outside business people like, stall, tower rent in premises.

Please give me the suggestion to reply for tax forced by income-tax department

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Quick Summary

This discussion addresses a notice from the Income Tax Department regarding tax on the surplus amount for a residents welfare association. The association primarily receives funds from residents and does not generate income from external rentals. Advice is sought on how to respond to the tax demand, with a recommendation to consult a professional or chartered accountant.