Owners association

There is as such no requirement of deducting TDS. and ya only Co. & firms are compulsarily required to file returns.

Thanks for the reply, but I think a society is required to deduct tax at source for contract payments. 

my question is whether due to non deduction will the payment be disallowed and added back to income?

Explanation.—For the purposes of  section 194C,—

(i) "specified person" shall mean,—

(a)  the Central Government or any State Government; or

(b)  any local authority; or

(c)  any corporation established by or under a Central, State or Provincial Act; or

(d)  any company; or

(e)  any co-operative society; or

(f)  any authority, constituted in India by or under any law, engaged either for the purpose of dealing with and satisfying the need for housing accommodation or for the purpose of planning, development or improvement of cities, towns and villages, or for both; or

(g)  any society registered under the Societies Registration Act, 1860 (21 of 1860) or under any law corresponding to that Act in force in any part of India; or

(h)  any trust; or

(i)  any university established or incorporated by or under a Central, State or Provincial Act and an institution declared to be a university under section 3 of the University Grants Commission Act, 1956 (3 of 1956); or

(j)  any Government of a foreign State or a foreign enterprise or any association or body established outside India; or

(k)  any firm; or

(l)  any person, being an individual or a Hindu undivided family or an association of persons or a body of individuals, if such person,—

(A)  does not fall under any of the preceding sub-clauses; and

(B)  is liable to audit of accounts under clause (a) or clause (b) of section 44AB during the financial year immediately preceding the financial year in which such sum is credited or paid to the account of the contractor;

Hello,

 I  want details regarding Owner's association Account auditing. Can account audit of owner's association done ? Our secretary & chairman not providing propoer accounts details for last 8 years & showing irrelavant expenses in balance sheet? 

Is it possible to get audit done under any statutory provision?

Thanks,

Mayur

For a society which is registered under the Societies Registration Act, 1860, the principal act does not have any specification regarding the maintenance and audit of accounts. However, in order to meet the statutory requirements of the Income Tax Act maintenance of proper books of accounts and having an annual audit done generally becomes mandatory and should therefore be also followed by a registered society.

There are various provisions under the specific State Societies Registration Act(s) wherein provisions for Audit and filing of annual returns are specified. In general these Acts specify the check and audit of the accounts to be done by a duly qualified Chartered accountant within the meaning of the Chartered Accountants Act 1949 or a person approved by the Registrar of Societies in this behalf.

Section 5A & Section 4 B of Assam Act states that every society shall have its accounts audited once every year by a duly qualified auditor and have a balance sheet prepared by him. The auditor shall also submit a report showing the exact state of affairs of the Society. Three copies of the balance sheet and the auditors report shall be certified by the auditor. A copy each of the balance sheet and auditors report certified by the auditor under sub section (2) of Section 5 A should be forwarded to registrar within thirty days after the holding of every AGM

Section 12 C of Gujarat Act & Section 12 D of Maharashtra Act states that the accounts shall be audited annually in such manner as may be prescribed by rules and by a person who is a Chartered Accountant within the meaning of Chartered Accountants Act 1949 or by such person as may be authorized in this behalf by the State Government. It also states that it is the Auditor’s duty to prepare balance sheet and report irregularity .The auditor should prepare a report relating to auditing such account (prepared according to Sec 12 C) and forward a copy of the same to the inspector general.

Sec 4A of Pondicherry Act specifies that a copy of the balance Sheet together with a statement of receipts and expenditure duly certified by at least two members of the governing body and audited by a person who has been granted a certificate by the Government under the Chartered Accountants Act 1949 or by a special auditor approved by the Government shall also be filed with the registrar of companies at the same time as required under section 4.A filing fee of Rs.3/- each shall be paid along with the list and the balance sheet and copy of alteration to rules respectively under section 4 and 4A.

Section 12D of Goa Daman & Diu Act states that the accounts of a society shall be audited annually in such manner as may be prescribed and by a person who is a Chartered Accountant within the meaning of the Chartered Accountants Act 1949 or by such persons as may be authorized in this behalf by the Government. It also states the auditor should prepare a report of the accounts audited and report any irregularities therein. A copy of the same should be forwarded to the registrar.

Section 15 of West Bengal Act specifies that the society should have the accounts audited once a year by a duly qualified auditor and have the balance Sheet prepared by him. The auditor should also submit a report which shows the exact state of the financial affairs of the society.

Section 16 of Tamil Nadu Act & Rule 18-22 of Tamil Nadu Rules states that every society shall have its accounts, audited once every year by a duly qualified auditor or by two or more members(not being members of the committee) of the registered society . The irregularities should be reported to the registered society..

Regarding the filing of copies of the balance sheet and statement of accounts to the registrar of societies, however various State Governments have made amendment in the principal Act to provide for filing of Accounts. Even if not specified, the society should annually file a copy of the Balance Sheet, Statement of receipt and payments along with the appropriate fees .The above should be certified by at least one member of the governing body preferably within one month of the AGM along with a list of the members of the Governing Body.

If your owner's association is in Maharashtra you can refer to The Maharashtra Apartment Ownership Act, 1970.

I want to know a detail regarding income tax returns .., I have paid 50000 rs for opening a life insurance policy on 29/03/2016 ., but for the financial year 2015-2016 I paid income tax in the month of feb.., now for 2016-2017 I have to pay tax by next week .., my doubt is that whether the acknowledgment for the pay of 50000 dated 29/03/2016 is eligible for applying tax benefits this time ., because for the last FY I paid my tax without benefits