Interest on Fix Deposit by Co operative Housing society can be considered as deduction under 80-PD2.
My question is on co operative Housing societies Income Tax Liability- If any co operative Housing society has earned any Interest on their Fix Deposit with any co operative Bank,whether such interest amount is taxable ? Can society take deduction under 80 -P-D 2 ? The Supreme Court verdict says any interest income is taxable Till now Co op.Banks were not making any TDS on the interest income,this was ruled out and all banks were directed to deduct TDS from 2015 on wards. Even though Co-Op Banks are registered under coop Bank,they cease to consider as Society,once they start their business under Billing Regulation Act 1949 and with non members.
Some say that the Interest earned should be treated as Income from other Sources and should be taken for taxation allowing standard deduction.
Only the income from operational business is entitled for 80-P Deduction.
Since as per Income Tax Dept the claim and prove is the responsibility of Assess ace, require guidance on above lines. more
Some say that the Interest earned should be treated as Income from other Sources and should be taken for taxation allowing standard deduction.
Only the income from operational business is entitled for 80-P Deduction.
Since as per Income Tax Dept the claim and prove is the responsibility of Assess ace, require guidance on above lines. more
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As per sec 9 of the income tax act any income received or accrued or deemed to be received is taxable but societies are considered as non profit seeking organizations so based on that u can surely ask for refund but deduction as per sec 195-198 for tds is mandatory if the income is shown as other income. more
Oct 10
OFFHAND WRT the Poser by Querist ; also the only Reply thereto by nagarajtirumanivemula@gmail.com It is possible that the SC Judgment querist refers is to is that in the case of Bangalore Club. Premised so, the personal thoughts and viewpoints shared- apart from those through several Posts on FB / Linkedin,, and elsewhere, on related aspects - may, if so inspired, first be looked up @http://itatonline.org/…/ms-bangalore-club-vs-cit-supreme-c…/ more
Oct 10
10-10-2018 Bangalore Yes, such interest income is taxable. Clarification: Society - on one side (A) Members - on the other side (B) Investment as FD in other bank (C). So between A and C it is a commercial activity meant for profit. Hence such income is taxable. Suppose, invested or interest income is given to any noble cause (D) Then such an activity A and D is exempt from tax. Because of the purpose. Concept here is: Income in the hands of the assessee (A) in case of A & C is available for disposal. But in case of A & D, the income in the hands of assessee (A) is zero. Hence exempted. An organization pursueing for a social cause should spend only for that. Otherwise pay tax. Hope this will clarify your doubt. -Nagaraj T V ABTPN5713D nagarajtirumanivemula@gmail.com more
Oct 10
