Income Tax On Housing Society
The general perception of the Managing Committee of a cooperative housing society is that the income generated by the society is not chargeable to tax and therefore do not bother to file Annual Tax Return. This is a wrong perception since though certain types of income of cooperative housing society are fully exempted there are other incomes which are chargeable to tax.
The society’s income is generated by the following charges:
(1) Contribution from Members:
This is the most common charges the society collects from its members to run the day to day affairs of the society. They are credited under different heads namely, maintenance, municipal taxes, electricity, lift maintenance, housekeeping, water charges, repair funds, sinking fund. etc. Any surplus generated due to these types of income is not chargeable to tax as its exempted based on the “Concept of Mutuality”
(2) Interest charged on member outstanding dues:
Interest charged by the society on outstanding dues again forms a part of contribution and qualifies the test of concept of mutuality and is exempted.
This Blog is penned after a spate of violent attacks taking place across Mumbai every other day and we all read it in the newspaper and think this will not happen to us.
Navi Mumbai: Registered housing societies can participate in ‘Swachha Society Award’ contest launched by a private bank recently. The contest is an extension of Swachh Bharat Abhiyan, started by the bank to recognise, inspire and celebrate excellence in cleanliness, safety and adoptionof green technology in housing societies.
This inter society contest, conducted by ICICI Bank, will reward housing societies which take up environment friendly initiatives in their complexes.
Spanning over 50 days, from July 8- August 31, the contest will include initiatives on energy conservation, rainwater harvesting, segregated waste dustbins, mopping machine, compost pit and more.
मटा ऑनलाइन वृत्त । मुंबई