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There is little bit ambiguity in income tax matter of cooperative society and many of us have different set of questions in this regard. Hence to provide you some clarity we had drafted this write-up. Let’s get clarity on your these questions.
- Are we being housing society liable to pay Income Tax?
Yes. Cooperative Society is taxable entity under income tax act, 1961 and Cooperative society is treated as Association of person (AOP) under the act.
- Which of our income are taxable?
Let’s see income of housing society one by one to understand better.
- At what rate we being housing society get taxed?
There is no basic exemption limit for cooperative society. Society income are taxed under following slab.
- Income Up to Rs 10,000.00 is charged at 10%
- Income upto Rs 20,0000 is charged at 20%
- Income upto Rs 20,0000 is charged at 20%
Income tax liability will be increased by 3% education cess & higher education cess.
- What are exemptions available to us?
Section 80p (2) (d) is available to housing society. This section allows exemption on interest or dividend earned from investment made in other cooperative society.
- What is the due date for filing income tax return?
You need to pay income tax liability if any before filing income tax return. Due date for filling income tax return is 30th September and ITR 5 is used in filing income tax return.
About Author
CA Priya Subodh Dodal
We at Esanchalak realize the social impact of Co-operative movement in our country shall not only stay but also grow in times to come in various sectors. Our mission is to provide efficient governance for every co-operative organization to attain efficiency and self-sustainability for the good of every member of the society.
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