Dear Sir
We are Housing co_op Society I have below query relating to accounting & Income Tax of various transactions
1. We have collected amounts from members for Navratri Festival What is the treatment of the same. i.e Should it be credited to income and expenditure accounts(Contribution collected from members for Navratri) and Debited to Income & Expenditure accounts (Various Navratri Expenses out of Contribution Collected)
OR
Should it be Credited or Debited to Navratri Fund and shown under other Reserve Fund in Balance Sheet.
2. Should we pay income tax on Balance Amount if we follow First Treatment i.e charged to Income & Expenditure accounts OR No to pay Income tax if we Create Navratri Fund shown in Balance Sheet
Pl. Give your guidance on above issues.
CAclubindia
