Taxation of flat owners apartment
elango.parameswaran
(Querist) 23 December 2014
This query is : Resolved
We have a registered Flat Owners Association. The Builder has returned the Corpus Amount to the Association, which is deposited in the SB Account. Now, our queries are :-
1)Do we have to get PAN compulsorily
2)Do we have to file IT Return
3)Our main income is the maintenance charges
4)If we deposit the Corpus Amount in any scheduled Banks/ Nationalised Banks/ Coop Banks or other NBFCs, whether the interest on such deposit will attract income tax?
5)Whether we are eligible for any exemption on the interest income under IT Act
ajay sethi
(Expert) 24 December 2014
raise query in CA club india.com
AVINASH KUMAR
(Expert) 25 December 2014
you have to apply for PAN and you have to file IT Return. your income of maintenance charges and interest on Deposits will attract of income tax but you may claim expenses against maintenance charges and other administrative charges and other relevant expenses which relate to income of maintenance charges.
Sailesh Kumar Shah
(Expert) 25 December 2014
apply concept of mutuality on society, if whole amount utilize for the welfare of flat owner association then no income tax liability applies.
however, on certain amount, liability of service tax attracts.
T. Kalaiselvan, Advocate
(Expert) 27 December 2014
For all your queries, YES is the answer. You may arrange to get the intended actions done immediately by consulting a local consultant/auditor.
