Bank account of chsl
ars
(Querist) 17 April 2014
This query is : Resolved
Is it mandatory to open and operate a bank account of CHSL with a co-operative bank only? pl. mention the rule/ provision, if any, mandating that.
ajay sethi
(Expert) 17 April 2014
read bye laws adopted by society . it provides for obtaining account in cooperative bank . any interest o n fixed deposit would be exempt from tax .
you can also in addition have account in natonalised bank
Dr J C Vashista
(Expert) 18 April 2014
No, it is not mandatory to open and operate a bank account of CHSL with a co-operative bank only.
Sudhir Kumar, Advocate
(Expert) 18 April 2014
I will agree with Dr Vashistha only if the constitution of the society does specify as to in which bank (or which type of bank) can the account be opened.
malipeddi jaggarao
(Expert) 18 April 2014
If there is no mention in the bye-laws, it can be opened ith any bank.
ajay sethi
(Expert) 18 April 2014
Mumbai New model bye-laws 2009 for co-operative societies have some changes incorporated as compared with the bye-laws of 2001
Under the new bye-laws a bank account can be opened by the society in a State or District Central Co-op. Bank or its branch or in any Scheduled Co-op. Bank. A “Scheduled Co-op. Bank” has been included in the new bye-laws which was not the case under the earlier bye-laws. It is further provided that a society can also open an account in a nationalised bank with the prior permission of the registering authority
R.V.RAO
(Expert) 18 April 2014
as sri sethi ji advised above,it is a model bye laws, which will help guide in framing own bye laws by each coop. housing society.
if your chs has no bye laws, they can as well adopt the model bye laws.
otherwise ,follow your own society bye laws.if there is a nationalised bank near by and a cop. bank far away,amend your bye laws to suit your convenience and open bank account in nationalised bank.
your society can ask a nationalised bank for slightly better rate of interest on deposits and concessional bank charges etc..
since cop. bank's have lesser scale of operations, compared to nationalised banks, it is difficult to expect same concessions from coop. banks.
take tax advantages stated above . ask for no tds on your F.D interest .else you file IT return to claim back the same.
malipeddi jaggarao
(Expert) 19 April 2014
While I agree with the contents of advice tendered by expert Shri R.V.Rao, nowadays, nationalised banks have no choice of extending better rate/giving concessions in charges unless the deposit is of bulk size. It is for the convenience rather than the concessions chs has to choose the bank where it has to open its account following the bye-laws.
ars
(Querist) 22 April 2014
My sincere thanks to all the experts for their views.
