Income tax of flat owners association (apartment owners)
This query is : Resolved
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 December 2013
Flat owners Association is tread as AOP ( Apartment Owners). Flat owners contribute monthly basis for common maintenance of building. Flat Owners have also deposited in Fixed Deposit with Co-Op. Bank in the name of apartment. Interest on such deposit is also used for maintenance of apartment.
The surplus of contribution and interest over expenses for maintenance remaining at the end of year is carried forward to subsequent year.
In this regards, whether deduction u/s 80P is applicable for interest received from Co-op. Bank?.
Whether, surplus at the end of year is taxable in the hands of Association or not.
Flat owners Association is tread as AOP ( Apartment Owners). Flat owners contribute monthly basis for common maintenance of building. Flat Owners have also deposited in Fixed Deposit with Co-Op. Bank in the name of apartment. Interest on such deposit is also used for maintenance of apartment.
The surplus of contribution and interest over expenses for maintenance remaining at the end of year is carried forward to subsequent year.
In this regards, whether deduction u/s 80P is applicable for interest received from Co-op. Bank?.
Whether, surplus at the end of year is taxable in the hands of Association or not.
CA PARAS BAFNA
(Expert)
11 December 2013
Section 80P is avaialble to a Co-Op Society and not to an AOP.
.
FDR interest is taxable income.
.
Surplus out of maintenance charges collected from members is not taxable.
.
.
FDR interest is taxable income.
.
Surplus out of maintenance charges collected from members is not taxable.
.
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