01 July 2009
Dear friends, Please share your valuable opinion on the follwing issue:
An Apartment Owners Association is registered under the Karnataka Society Act. The Corpus of the Society was invested in Bank Fixed Deposit. The bank had paid interest on fixed deposits. As per my view, this interest is taxable under the income tax act. Since there is a mutuality concept, the other income like subscription etc is not chargiable to tax.
01 July 2009
Hi, The interest on bank FDR is chargeable to tax. The other sums like annual membership fees, subscriptions, donations, are also chargeable to tax. The association is an independent assessee seprate from its members.
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