DEDUCTION U/S 80P (2)(a) ????

PRACTICING LAWYER

Q: A co-operative housing society provides credit facility to its members. Due to sudden inflation in cost of land, the society earned profits against sale of apartment (construction done by the society), loans given to the prospective purchasers admited as members of the society under principles of mutuility. Please confirm whether this additional profit of around 3 Cr. [having no motive to earn it and duly allowed by society's bye-laws] is taxable in the hands of the society or goes for deduction u/s 80P (2)(a)????




 


The Society is a very big organisation having 40,000 members and are giving housing loan facility by mortgage of house property. Investments are about 300 Cr.




 


 




 


Adv. Alok A. Bhagat




 


Nagpur    

 
Reply   
 
Advocate

Purchassing land, and constructing flats is the prorogative of the cooperative housing society .These accounts do not qualify for deductions,since it is the business transactions of the socity.On allotment,the member is entitled for deductions towards the payment of principal and interest under the IT act for the flat alloteed to him

 
Reply   
 


LEAVE A REPLY


    

Your are not logged in . Please login to post replies

Click here to Login / Register  



 

Search Forum:








×

  LAWyersclubindia Menu