Co-operative housing society

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Manish (Querist)
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27 October 2007 We have registered cop-operative housing society about190 members. we have collected one time maintenance amouting to Rs. 2.5 crores from the all member and deposited in a nationalised bank. Yearly we are getting interest from the bank round about Rs.25 lakhs. From this interest income we are maintaining the society. After making the provision for Sinking Fund there is a defict in the Income & Expenditure Account. There is no cash Loss. The surplus remains not more than 10 to 15 thosuand before making sinking fund provision.
ISSUE:- Whether Bank sholud deduct the TDS on the Interest Income credited to the society?
If yes then how to get refund of the same from the Income-tax department?
Whether co-operative housing society is liable to file for income tax return?

Manish

Manish (Querist)
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27 October 2007 Plz answer this query ASAP

Manish

Manish (Querist)
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27 October 2007 Whether audit of co-operative housing society can be conducted by the same auditor for three years within one year since no AGM had been called for since last 3 years.

R.V.RAO

R.V.RAO (Expert)
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27 October 2007 SEC10 CLAUSE 27 EXEMPTS ONLY INCOME OF A COOP. SOCIETY IF FORMED FOR PROMOTING INTEREST OF MEMBERS OF SCHEDULED CASTES AND TRIBES. HOUSING SOCIETY .
SEC 80 P EXEMPTIONS OF INCOME FROM INTEREST DOES NOT COVER A COP. HOUSING SOCIETY.
SO BANK INTEREST IS SUBJECT TO TDS .
YES. IT RETURN NEEDS TO BE FILED. RATE OF TAX @ 30%PLUS SURCHARGE PLUS ED. CESS.
AS FOR AUDIT ,THE BYE LAWS OF THE SOCIETY GOVERN THE ISSUE.IF YOU ARE REGISTERED UNDER SOCIETY'S REGISTRATION ACT ,YOU ARE BOUND TO SUBMIT AUDITED ACCOUNTS TO MEMBERS EACH YEAR.
AS PER YOUR BYE LAWS IF AGM IS TO BE CONDUCTED EACH YEAR, THE SAME NEEDS TO BE COMPLIED WHERE IF ACCOUNTS ARE NOT AUDITED AND READY, THE SAME FACT IS TO BE BROUGHT TO NOTICE OF MEMBERS .
AUDIT AS EARLR TO BE DONE AS POSSIBLE AFTER EACH FIN.YEAR.
YOU MAY ARRANGE TO CONDUCT AUDIT BY SAME AUDITOR FOR 3 YEARS IF THERE IS NO BAR AS PER YOUR BYE LAWS.
R.V.RAO

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