Depreciation of fixed assets- coop housing society in mumbai

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Co-operative housing societies in Maharashtra, including those in Mumbai, are required to charge depreciation on fixed assets annually. This non-cash expense must be recorded in the Income & Expenditure Account as an operational cost. Depreciation reduces the asset's value on the Balance Sheet and is crucial for accurately determining the society's net profit according to Maharashtra Co-operative Societies Rules.

N V Shouche

N V Shouche (Querist)

15 September 2026 In coop housing soociety in maharashtra how should a coop housing society treat The amount depreciation which is a non-cash operational expense in its books of accounts in income and expenditure statement

Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

15 September 2026 A Maharashtra co-operative housing society should charge depreciation to the Income & Expenditure Account every year. The fact that depreciation is a non-cash expense does not justify omitting it: it represents the annual consumption or reduction in value of the society’s fixed assets.
The Maharashtra Co-operative Societies Rules require depreciation to be considered while determining net profit. Rule 49A lists depreciation among the items to be deducted, and Rule 62 requires the annual financial statements to ordinarily be prepared in Form N.

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Dhirajlal Rambhia

Dhirajlal Rambhia (Expert)

15 September 2026 A cooperative housing society in Maharashtra must debit depreciation on fixed assets to the Income and Expenditure Account as an operational expense under property or establishment expenses, and simultaneously deduct it from the asset's value in the Balance Sheet.

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