Taxation on apartment owners association

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

29 December 2014 We have a registered Flat Owners Association. The Builder has returned the Corpus Amount to the Association, which is deposited in the SB Account. Now, our queries are :-
1)Do we have to get PAN compulsorily
2)Do we have to file IT Return
3)Our main income is the maintenance charges
4)If we deposit the Corpus Amount in any scheduled Banks/ Nationalised Banks/ Coop Banks or other NBFCs, whether the interest on such deposit will attract income tax?
5)Whether we are eligible for any exemption on the interest income under IT Act

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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29 December 2014 1. In view of deposit made in bank PAN is compulsory otherwise higher TDS will be made.
2. You have to file return and pay 30% tax on interest income.
3. No tax payable on maintenance charges.
4. Tax payable on interest income.
5. No exemption on interest income.

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Rupesh Jain

Rupesh Jain (Expert)
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29 December 2014 YOU HAVE TO REGISTER AS TRUST UNDER INCOME TAX ACT THEN YOU GET THE TAX EXEMPTION. OTHERWISE YOU HAVE TO PAY THE TAX AT HIGHER RATE @ 30%

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Querist : Anonymous

Querist : Anonymous (Querist)

30 December 2014 Kindly clarify the additional points
1)Is there any exemption for the interest on FD made in Cooperative Banks
2)Whether the entire interest on FD will be taxable or any standard deduction is there for the interest income
3)It is expected that the interest income will be around Rs2lakhs. If so, do we have to pay IT @30% on Rs.2 lakhs or there will be any deductions
Please clarify

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
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30 December 2014 1. No exemption for interest made in Co-op bank.
2. Entire interest is taxable.
3. You have to pay 30% on 2 lakhs.

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