- INCOME TAX
Societies are mandatorily required to file Income Tax returns and also pay the Income Tax. All amount collected from the members of the Society – maintenance, parking charges, repair funds, sinking funds, etc. are not part of taxable income.
Every apartment community/housing society/gated communities are liable to pay income tax as part of its society billing and accounting, provided there is Non Member Income. Any income acquired through revenue channels that is not part of maintenance payment fall under this category.
Section 194C and 194J of Income Tax Act mentions two categories of TDS to be deducted :
- Contractor – Consolidated payment during the Financial Year. For individuals/HUF for a threshold limit of INR 100000, the tax percentage is 0.75% and 1.5% respectively, to be submitted by challan 281. Applicable from 14/05/2020 to 31/03/2021.
- Professional Fees for a threshold limit of INR 30000, attracts a 7.5% TDS to be submitted by challan 281. Applicable from 14/05/2020 to 31/03/2021.
Output GST is automatically calculated and collected on maintenance charges. Not just that! You can even collect GST on applicable individual line items. This is especially helpful for housing societies in Maharashtra.
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