Income Tax and Stamp Duty

   25-05-2019 -       UMESHCHANDRA YADAV -       no comment.

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1. Is it necessary to pay Income Tax by the Co-operative Housing Society?

Ans: Yes. It is necessary to pay income tax by the Co-operative Housing Society.

2.  Member ‘A’ of the Co-operative Housing Society has sold his gala to ‘B’, however stamp duty was not paid and ‘B’ has sold gala to ‘C’. Then whether an amount of stamp duty on the agreement executed between A & B can be recovered from ‘C’?

Ans:  No. The amount of stamp duty on the agreement executed between A and B cannot be recovered from C. C is only responsible to pay the amount of stamp duty on agreement executed between B and C. (pls. Check Answer)

3. Is it necessary to submit returns when Co-operative Housing Society is in loss or there is no income?

Ans: Yes. It is necessary to submit returns when Co-operative Housing Society is in loss or there is no income.

4. Is a Stamp Duty applicable on Leave & License Agreement? If applicable what are its rate?

Ans: Yes. It is obligatory to pay stamp duty on Leave & License Agreement. Its rate is as follows:

a) Rs. 2000/- Stamp Duty on the agreement which is not more than one year period which there is not a section of renewal.

b) Rs. 10,000/- Stamp Duty on the agreement which more than one year but not more than 3 years period with section or without section of renewal.

c ) Stamp Duty shall be charged three times of an average annual rent on the agreement which is more than 3 years but not more than 10 years period with renewal section or without it.

d) Stamp duty shall be charged five times of an average annual rent on the agreement which is more than 10 years but not more than 20 years with renewal section or without section.

5. Whether Co-operative Housing Society deducted Income Tax amount from the amounts to be given to contractor?

Ans: Yes. Co-operative Housing Society can deduct Income Tax amount from the amount to be given to the contractor.

6. Where a member of the Co-operative Housing Society transfers his shares and vested interest in his family in which actual transaction does not take place, in such cases is it necessary to stamp duty?

Ans: Subject to the Provision in Schedule 1, article 25, sub-sections (A) (B) (C) and (D) of the Bombay Stamp Act 1958, Stamp duty has been charged on the gift deed as per market rate of non-movable property.

7. Which is a taxable income of the income received to the Co-operative Housing Society? Taxable Income is as follow:

Ans: a. Transfer Premium.

b. Income received from installing dish antenna.

c . Income received from giving premises on rent.

d. Income received from interest on dues of the members.

e. Income on deposits.

f. Income received from the sell of construction area.

g. Any Income eligible for income tax under Income Tax Act.

8. Is an Income received from sell of construction area taxable?

Ans: Yes. Income received from sale of construction area is taxable.

9. Is it necessary to pay stamp duty if galas in Co-operative Housing Society are exchanged?

Ans: Is it necessary to execute exchange deed in it? Stamp Duty has been charged in exchange deed as per provision in schedule 1, article 32 of the Bombay Stamp Act, 1958.

10. Is it necessary to pay stamp duty while transferring rights of power and vested interest to the nominated heirs of the deceased member of the Co-operative Housing Society?

Ans: To pay stamp duty is not necessary in such cases.

11. Whether the excess fund deposited from members than actual expenses is eligible for income tax?

Ans: Excess fund deposited from members than actual expenses will not be counted for income tax.

12. In which form, the Co-operative Housing Societies have to file Income Tax Returns?

Ans: Co-operative Housing Societies have to file Income Tax Returns in Form No. 2.

13. Whether Co-operative Housing Society deducted Income Tax amount from the amounts to be given to contractor?

Ans: Yes. Co-operative Housing Society can deduct Income Tax amount from the amount to be given to the contractor.

14. Who is responsible to pay Stamp Duty among the persons who transfer flat and on whose name transferring is made?

Ans: As per provisions under Section 30 of Bombay Stamp Act 1958, the responsibility to pay stamp duty is falls on a person on whose name the gala is transferring or that person who purchased the gala.

15. Whether an amount received from transfer premium and donation to the Co-operative Housing Society are taxable?

Ans: Yes. An amount, received from transfer premium and donation to the Co-operative Housing Society are taxable.

16. Is it necessary to pay Stamp Duty on the allotment letter given to the member while land purchased by the Co-operative Housing Society and its allotment made among the members.

Ans: It is necessary to pay stamp duty on land allotment letter.


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