co operative society
This query is : Resolved
12 September 2017
sir, our housing co operative society have income of 30000 from member for contribution for maintainence and other expenses and Rs. 200000 from interest income. our society have all exp. is 400000 and save 100000 so how tax is apply ?
19 July 2024
Based on the information provided for your housing cooperative society, let's calculate the tax liability:
### Income of the Housing Cooperative Society:
1. **Income from Members' Contributions**: Rs. 300,000
2. **Income from Interest**: Rs. 200,000
### Expenses of the Housing Cooperative Society:
1. **Total Expenses**: Rs. 400,000
### Calculation of Surplus (Profit) for the Year:
- Total Income = Income from Contributions + Income from Interest
= Rs. 300,000 + Rs. 200,000
= Rs. 500,000
- Total Expenses = Rs. 400,000
- Surplus (Profit) = Total Income - Total Expenses
= Rs. 500,000 - Rs. 400,000
= Rs. 100,000
### Taxation of Housing Cooperative Society:
1. **Deduction under Section 80P**:
- Housing cooperative societies are eligible for deduction under Section 80P of the Income Tax Act. Generally, they can claim deductions for profits and gains derived from their business activities.
2. **Taxable Income**:
- In your case, the surplus (profit) of Rs. 100,000 would be considered taxable income of the cooperative society.
- This income will be subject to tax at the applicable cooperative society tax rates.
3. **Tax Rate for Cooperative Societies**:
- The tax rate applicable to cooperative societies is 30% of the taxable income.
### Tax Calculation:
- Taxable Income (Surplus) = Rs. 100,000
- Tax Rate = 30%
- Tax Payable = Taxable Income × Tax Rate
= Rs. 100,000 × 30%
= Rs. 30,000
### Summary:
- **Taxable Income**: Rs. 100,000
- **Tax Payable**: Rs. 30,000
### Important Notes:
- Ensure that the cooperative society complies with the provisions of Section 80P while claiming deductions.
- Consider consulting with a tax professional or accountant who can assist with accurate tax calculation and compliance.
This calculation assumes that the cooperative society is eligible for deduction under Section 80P and is taxed at the standard rate of 30% on its taxable income. The exact tax liability may vary based on any specific deductions or exemptions applicable to your cooperative society's income and expenses.
### Income of the Housing Cooperative Society:
1. **Income from Members' Contributions**: Rs. 300,000
2. **Income from Interest**: Rs. 200,000
### Expenses of the Housing Cooperative Society:
1. **Total Expenses**: Rs. 400,000
### Calculation of Surplus (Profit) for the Year:
- Total Income = Income from Contributions + Income from Interest
= Rs. 300,000 + Rs. 200,000
= Rs. 500,000
- Total Expenses = Rs. 400,000
- Surplus (Profit) = Total Income - Total Expenses
= Rs. 500,000 - Rs. 400,000
= Rs. 100,000
### Taxation of Housing Cooperative Society:
1. **Deduction under Section 80P**:
- Housing cooperative societies are eligible for deduction under Section 80P of the Income Tax Act. Generally, they can claim deductions for profits and gains derived from their business activities.
2. **Taxable Income**:
- In your case, the surplus (profit) of Rs. 100,000 would be considered taxable income of the cooperative society.
- This income will be subject to tax at the applicable cooperative society tax rates.
3. **Tax Rate for Cooperative Societies**:
- The tax rate applicable to cooperative societies is 30% of the taxable income.
### Tax Calculation:
- Taxable Income (Surplus) = Rs. 100,000
- Tax Rate = 30%
- Tax Payable = Taxable Income × Tax Rate
= Rs. 100,000 × 30%
= Rs. 30,000
### Summary:
- **Taxable Income**: Rs. 100,000
- **Tax Payable**: Rs. 30,000
### Important Notes:
- Ensure that the cooperative society complies with the provisions of Section 80P while claiming deductions.
- Consider consulting with a tax professional or accountant who can assist with accurate tax calculation and compliance.
This calculation assumes that the cooperative society is eligible for deduction under Section 80P and is taxed at the standard rate of 30% on its taxable income. The exact tax liability may vary based on any specific deductions or exemptions applicable to your cooperative society's income and expenses.
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