Income tax for flat owner welfare association

Manoharan (Querist) 30 November 2011 This query is : Resolved

We are having Flat Owner Welfare Association in Trichy, Tamil Nadu,in which are having 178 flats. We have deposited certain amount in Fixed Deposit in a Nationalized Bank. The interest earned from the deposit amount is utilized only for maintaining the common amenities in the flat.

Kindly clarify whether we have to pay Income Tax for the interest earned from the deposit.

N. Manoharan

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ajay sethi (Expert) 30 November 2011
the fixed depsoits have to be placed in a coopeartive bank if you want exemption from income tax . atleast that is the prvision in maharashtra

Manoharan (Querist) 02 December 2011
The interest earned from the deposit amount is utilized only for the welfare of the residents in the flats. Even then, if we put it in Nationalized banks, is it taxable? Income Tax experts may kindly clarify.

N. Manoharan

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