dear all,
we are living in a flat. the flat is going to be registered also under the act and we are planning to take PAN also. the query is regarding the interest income on fixed deposits with nationalised bank under the association name. by going through the principle of mutuality, is this interest taxable, if so can we provide any forms so that this interest does not get taxed as it is used for the interest of members of the flat only.
pls clarify.
4 Replies
Balaji Ramalingam
(Student - CA Final)
(285 Points)
Replied 08 February 2018
Interest income is taxable. Principle of mutuality will hold good only in the circumstance in which the receipts of the association is only from the members and the spending & any surplus is only for the participators. In your case the receipt of from bank which is not a part of association, hence it is taxable.
Sreevidhya V
(405 Points)
Replied 09 February 2018
thank you for the reply
is there anyway by which we cn avoid tax like by giving any form like 15h??
if not how to get refund of this as there is no profit / income to declare.
is there anyway by which we cn avoid tax like by giving any form like 15h??
if not how to get refund of this as there is no profit / income to declare.
Balaji Ramalingam
(Student - CA Final)
(285 Points)
Replied 12 February 2018
Sorry ma'am. I'm not aware of it. In my view the tax has to be paid since you are earning interest income.
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