Hello Everyone,
We are a block of 39 apartments in chennai . We do not want to form an association at all. We are planning to do renovation building works for all of our apartments.and the estimation of the works comes to roughly 50 lakhs.
1) Can we form a simple joint account with 3 joint account holders and collect money from each of the 39 apartment owners and deposit it in the joint account.
2) We are going to issue ONLY cheque payments to the builder for the renovation purposes as and when he completes the works
3) and finally once the renovation gets completed we plan to redistribute the remaining amount among the 39 apartments and make it a NULL balance account. The entire process of renovation will not exceed a period of 2 years maximum.
If we provide the detailed monthly statement and a detailed letter to the income tax department, is it okay to proceed as above ?
Will there be any problem with income tax authorities ?
Shanthi
CAclubindia
