Income Tax applicability for cooperative Housing Society.
Can anyone advise me on Co-operative Housing Society's Income Tax liability-
Please specify whether Interest Income on FD's is society's Income from other sources?
If other Income is Taxable then can society claim deduction ?
Whose responsibility is for deduction claimed? Is it society's responsibility? more
Please specify whether Interest Income on FD's is society's Income from other sources?
If other Income is Taxable then can society claim deduction ?
Whose responsibility is for deduction claimed? Is it society's responsibility? more
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1) On the concept of mutuality, contribution from members are not taxable. 2) Interest income from Fixed Deposits with other than Cooperative Banks is Taxable. Cooperative Bank will not deduct tax at source. 3) Other Income like Mobile Tower or Hoarding Site Rent are taxable. You can offer these under Income from Property, claim statutory deduction u/s 24(1) @ 30% and from balance claim basic deduction of Rs. 50,000 U/s 80-P 4) Filing of Income-tax return is mandatory. 5) Responsibility is resting on office bearer say Secretary who has to ensure compliance and verifies the return more
Sep 09
Income tax deduction to cooperative societies is provided on sections 80P. In your case, since interest is not from investment with any other cooperative society, interest will be taxed as Income from other sources (section 80P(d)) . Society can claim deduction of ₹50000. ( 80P(c)(ii)) more
Sep 08
Co-op housing society is more like a company whose members (shareholders) are entitled to share it's monetary profits (interest on FDS or any other investments that may entail) . Government has initiated these housing projects for the benefits & social care of the people. Societies should not incur any income tax which abates the whole purpose of cooperative efforts created. First members will share profits from investments & if at all any excess money left , is hopefully taxed ,depending on the any liabilities society has or will have in future. Societies income should not be taxed. more
Sep 08
Mind it, a Cooperative Housing Society is a legal entity. Any income and expenditure are accordingly accountable and open to income tax liability. It is not a profit sharing society among its members. more
Sep 08
Yes FD interest is fully taxable after Supreme Court Judgement in 2015.Other income is taxable and society can claim deduction of expenses incurred for earning other income more
Sep 08
