Tax on apartment association
(Querist) 13 December 2022
This query is : Resolved
We have formed owners apartment association managed by the members ( Owners ). we collecting monthly maintenance and incurring expenditure to meet apartment expenses like security housekeeping and other maintenance works
apart from this we had Corpus fund which we converted into Fixed deposit and we are getting interest income.
every year when we are filling return I noticed we are paying income tax on interest income at the rate of 30% + surcharge
whether tax is applicable on apartment association or lower rate of tax or it should be treated like individual and should be entitled for basic exemption of Rs.2,50,000
(Expert) 13 December 2022
No tax is applicable to your apartment. however, consult a local CA.
Dr J C Vashista
(Expert) 15 December 2022
The association has sufficient funds at their disposal to engage and hire professional services of local prudent CA / lawyer practicing taxation, accordingly it do not require obligation.
(Querist) 15 December 2022
Thanks for feedback