Interest earned by CHS on FD with PSU Bank

This query is : Resolved

supukha (Querist)
Follow

04 October 2019 Hello Experts,

I need help on the following.

1) Our Society has accumulated funds by means of Sinking Fund and Repair Fund which are invested in FD with PSU Bank.

2) CHS has earned Interest on those FD and had not filed ITR and how they have done that.

3) CHS has charged to each member under title "Income Tax Charges".

4) I am of the opinion that Income Tax on the interest that is earned by CHS should be deducted from the Interest Income. Kindly educate.

5) If FD is made with Cooperative Bank/s then the Interest Income is not chargeable. Is this correct?

6) If CHS to charge Income Tax to each member then can we suggest to keep the funds in Current Account so no Interest earned and no need for paying Income Tax

7) Can a member of CHS decline to pay towards Sinking Fund and Repair Fund if these two are the factors for investments in FD?

Thank you in advance
Regards

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

04 October 2019 1 Income tax payable by the society on interest income earned from FDs including interest income from co-op bank.
2 Income Tax on the interest that is earned by CHS should be deducted from the Interest Income and not collected from members.
3 Keeping the funds in current account is not a right decision. The funds are meant for earning interest to meet the repair expenses out of interest earned after paying income tax.
4 No he can't decline funds has to be intact and kept in FD and only interest income has to be spent for repair expenses.

Message likes : 1 times

supukha

supukha (Querist)
Follow

04 October 2019 Respected CA R Seetharaman,

Greetings!

Thank you for your response.
I have noted that contribution towards Repairs Funds cannot be decline.
I will raise the matter with CHS as to on what basis or prevalent laws the member has to bear the income tax.
If you have any more information related to this by means of any CHS laws then kindly guide.
Thank you again
Regards

supukha

supukha (Querist)
Follow

04 October 2019 Sir JI,
I clicked on Like but it is not getting activated.
Thank you again.

supukha

supukha (Querist)
Follow

04 October 2019 Sir JI,
I clicked on Like but it is not getting activated.
Thank you again.

CA R SEETHARAMAN

CA R SEETHARAMAN (Expert)
Follow

04 October 2019 Like conveyed thank you.

Message likes : 1 times

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Join the CA Students WhatsApp Community for ICAI Updates, Trending Courses & Notes!

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

RADHAKRISHNAN A R

ASHOK KUMAR TEKURU

giriswar

Credible HRM

atul kumar soni

Subscribe Now

Interest earned by CHS on FD with PSU Bank

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Senior Executive

Manager- Finance and Compliance

GST CONSULTANT

GST CONSULTANCY

Accountant

CA Final

Article Assistant

Associate CA