Compulsory Filing of Income Tax Return for Every Co operative Housing Society for Financial Year 2017-18 or Assessment Year 2018-19 To Get Deduction under Section 80p of Income Tax Act, 1961
Generally , people assumed that income of small housing society is not taxable hence there is no need to file Income Tax return. This assumption may be correct till no amendment was made in Section 80AC of Income Tax Act 1961. However Budget 2018 extended the scope of section 80AC to provide that the benefit of deduction under the entire class of deductions under the heading “C- Deduction in respect of certain incomes” in Chapter VIA shall not be allowed unless the return of income is filed by the due date prescribed .
For section 80AC of the Income-tax Act, the following section shall be substituted, namely:—
’80AC. Deduction not to be allowed unless return furnished.—Where in computing the total income of an assessee of any previous year relevant to the assessment year commencing on or after—
(i) the 1st day of April, 2006 but before the 1st day of April, 2018, any deduction is admissible under section 80-IA or section 80-IAB or section 80-IB or section 80-IC or section 80-ID or section 80-IE;
(ii) the 1st day of April, 2018, any deduction is admissible under any provision of this Chapter under the heading “C.—Deductions in respect of certain incomes”,
no such deduction shall be allowed to him unless he furnishes a return of his income for such assessment year on or before the due date specified under sub-section (1) of section 139.’
As per this section, Deduction u/s 80P is allowed only if Income Tax return is filed on or before due date prescribed under section 139(1) of Income Tax Act 1961. ( Due date was 30 Sep 2018 which was extended to 31st Oct 2018 for F Y 2017-18 i.e. A Y 2018-19). Deduction u/s 80P 2(d) related to Interest received from Co operative Society. Deduction u/s 80P 2(C) allows Standard Deduction up to Rs 50,000/- if Co operative housing society having Business Income (i.e. Income from Hoarding / Advertising Income )
Every Society has Bank Account either in Co operative Bank or Nationalised Bank . Similarly every Society has Fixed Deposit either in Co operative Bank or Nationalised Bank.
Saving Bank Interest or Fixed deposit Interest received from Nationalised Bank is taxable under the head of “Income from Other Sources” . It means you have to file Income Tax return
Saving Bank Interest or Fixed deposit Interest received from Co operative Bank is deductible u/s 80P 2(d) only if return is filed on or before 31st Oct 2018 for the Financial Year 2017-18 or Assessment Year 2018-19 as per amendment made in section 80AC in Budget 2018 otherwise Saving Bank Interest or Fixed Deposit Interest received from Co operative Bank is taxable at following rate :-
|Income Tax Slab/ Rate|
|Upto 10,000||10% of Total Income|
|10,001 to 20,000||Rs. 1,000 plus 20% of Total Income|
|Above 20,000||Rs. 3,000 plus 30% of Total Income|
|Note :- Education cess and Higher Education cess 3% is levied on above tax for A Y 2018-19.|
In Short, Every Co operative Housing society has to file Income Tax return as per new amendment made in Section 80AC in Budget 2018.