Can 2 or 3 CHSs form an association?

Q: Can a few CHSs form an association for mutual benefits in cost sharing

Opher Bhastekar, Mumbai

26th August 2019

Other in Lodha Palava City, Dombivli East, Mumbai

chs

association for mutual benefits

cost sharing

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Yes, a few CHSs can form an association for mutual benefits in cost sharing. Mutual concerns are not taxable under income tax as the concept of mutuality is exempted from its purview. The principle of mutuality is applicable to mutual benefit funds, wherein the contributors are not expected to gains profits as the income received by them are almost synonymous with their contribution and any amount that is received from oneself is not regarded as an income.