Contact us   Feedback   Annual Subscription   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Extracts
Home List
← Previous Next →

PRINCIPLE OF MUTUALITY / MUTUAL CONCERNS

Income Tax - Tax Liability in special Circumstances / Specific Cases - 08 - BASIC PRINCIPAL OF MUTUALITY The first basic principle of mutuality is that no person can trade with himself or make income out of himself. A mutual association arise when a group of persons associate together with a common object and contribute monies for achieving that object and divide the surplus amongst themselves. The objective should not be profit. The objective should be social security, entertainment, profession .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

does not make any difference because incorporation does not destroy the identity of the contributors and participators. The income of a mutual concern is exempt from tax as far as it is derived from activities of mutual nature, i.e., income received from members is exempt. The income from trading so far as it is confined to own members is also exempt. Where a mutual concern derives income from an activity with an outsider, then tax exemption will not apply to such income, i.e., income received .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 



|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version