Income earned by a mutual concern from mutual activities is no taxable whereas income earned from non-mutual activities is chargeable to tax.
- Applicability: Applicable to trade or professional or similar associations, which do not distribute any part of income to its members.
- Exception: Association for the purpose of control, supervision, regulation or encouragement of the profession of law, medicine, accountancy, architecture, computer science, chemistry, material management, town planning.
- Computation:
