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apartment owners association

08 April 2018

dear all,
we are in a flat which is registered under state. are we taxable as AOP or society??
if AOP What is the income tax rate??

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9 Replies

Samir (Accountant) (116 Points)
Replied 08 April 2018

AOP is association of persons

for your question answer is no

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Sreevidhya V (396 Points)
Replied 08 April 2018

sorry could not understand cn u elaborate the answer?

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 08 April 2018

Clearly explain what you want to know???

Sreevidhya V (396 Points)
Replied 08 April 2018

we are residing in a flat.... it is registered under state societies in tamilnadu. i would like to know the income tax applicability
1. is it an AOP
2. Is the interest earned on corpus fund parked in nationalised bank taxable??
3. i understand the maintenance charge from members not taxable on the concept of mutuality
4. what is the rate of taxation applicable to this apartment association Individual or MMR?
5. if we have more expenses than collection of maintenance charges can we off set the loss against interest income from fixed deposits??
need clarification on the above points. thnk u

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 08 April 2018

1. Yes it is AOP
2. Interest on corpus fund if form part of fund then not considered as an income.
3. Maintenance charges also form part of income
4. As per individual
5.Loss set off against Income from FDR also.

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Sreevidhya V (396 Points)
Replied 08 April 2018

thank you for your prompt reply
1. interest income will be credited to sb account which can be used in case of exigencies only. in this case is it taxable??
2. maintenance forms part of income, but then is this taxable??
thnk u

CA Rashmi Gandhi (Chartered Accountant) (86308 Points)
Replied 08 April 2018

1.It is also taxable.
2. Same is taxable.

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Sreevidhya V (396 Points)
Replied 08 April 2018

but i read maintenance charges collected from members of the association for running the flat is exempted on the basis of concept of mutuality. if collected from non members only it is taxable.is it so?? can you please confirm??