“Housing Society Taxes: What to Know in 2024”

Many housing societies in India might be surprised to learn they need to file tax returns. Just like any organization, societies have income and expenses, and the government needs a record of this. Let’s break down what you need to know about taxes for your society in 2024.

Filing Your Tax Return on Time:

Think of a tax return like a report card for your society’s finances. You need to file it with the government by September 30th each year. Missing this deadline can lead to fines and penalties, so be sure to mark it on your calendar!

What Kind of Income Gets Taxed?:

Not all the money your society collects gets taxed. Here’s a simple guide:

• Money from Members: This includes things like maintenance fees, water bills, electricity, and security charges. Since this money is just being shared amongst yourselves, the government doesn’t tax it.
• Interest on Savings: If you keep your society’s extra money in a cooperative bank, any interest you earn is tax-free. However, interest from other banks might be taxed.
• Renting Out Space: If your society rents out billboards, cellphone towers, or any other common areas, that income gets taxed.
• Empty Apartment Fees: If someone owns an apartment in your society but doesn’t live there, and they still have to pay fees, that income is taxable.
• Parking Fees: The money you collect for parking from members generally doesn’t get taxed. But if you rent out parking spots to outsiders, that income is taxable.

• Getting Help with Taxes:

If your society’s finances are complicated, you might want to consider getting help from a tax advisor. They can make sure you’re filing everything correctly and help you avoid any mistakes.

Remember: Keeping good records and filing your tax return on time will help your housing society stay compliant with the law and avoid any tax troubles.

Also Watch : https://www.dearsociety.in/post/2024/02/14/from-vision-to-reality-co-operative-housing-society-redevelopment/Important Rera Judgements taken by MahaRERA under different circumstance-2

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