Corpus fund reced at th time of redevlopment
This query is : Resolved
10 August 2010
Sir
My query is as follows
A builder has agreed to give us some corpus fund on redevlopment of our society there are 2 views that we are aware of
a)The corpus can be given in the name of the society and then the society distributes among its members
b the builder makes the individual cheques in the name of members
We are told that in the first case there would be double taxation once in the hands of the society and another individually whereas second option only once
what is the correct option to go in terms of taxation
Pls advise
N Kumar
My query is as follows
A builder has agreed to give us some corpus fund on redevlopment of our society there are 2 views that we are aware of
a)The corpus can be given in the name of the society and then the society distributes among its members
b the builder makes the individual cheques in the name of members
We are told that in the first case there would be double taxation once in the hands of the society and another individually whereas second option only once
what is the correct option to go in terms of taxation
Pls advise
N Kumar
CMA.Palani Arumugam
(Expert)
10 August 2010
In both the cases it is not taxable as there is no transfer involved by the members.
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