Income tax
suren
(Querist) 04 April 2014
This query is : Resolved
Dear Experts,
Our housing Co-op society proposes to invite Maintenance Fund Deposit ( Interest free ) from its member.
The Society further proposes to keep the same in a Co-Operative Bank in the Joint Name i.e. Society will be at First Name, Jointly with concerned member at second place.
The interest accrued on such deposit will be credited to the society's account directly by bank and society in turn will adjust the same amount in the maintenance fund payable by the member from time to time.
further, at the time of maturity, the fund will go back to member's account as per the terms and conditions laid down while putting the FDs with Bank.
Query :-
What will be the Income Tax Liability of such interest income generated.
Interest is credited directly to Hsg Society's account (exempted being co-op to co-op).
Or, will it be liable to member ???
Thanks and Regards
ajay sethi
(Expert) 04 April 2014
if it is in joint names it wont be exempt from tax . only if it in society name and placed in mumbai district cooperative bank would society get exemption . however better consult your CA in this regard
Rajendra K Goyal
(Expert) 05 April 2014
No tax liability on individual, interest would be accounted for in the account of society.
T. Kalaiselvan, Advocate
(Expert) 06 April 2014
You may consult a tax consultant/auditor to clarify the details properly
