Income tax on nationalised bank FD interest for owners welfare association

Dear Sir,

Hope you are doing well !!

Yes, it can be set off from income from interest.

Slab rates applicable for Individuals, would be applicable to it.

I think that there would be no tax liability after adjusting expenses.

Generally most societies are registered as co operative housing society and in that case most of their income becomes exempt from income tax but as you have used the work association I am assuming you have registered your society as an association of person. In that case you may set off excess income earned from FD against the expense of society and pay tax on remaining amount on the slab rates available to individuals below 60 years of age.

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Thank you

- Excess expense can not be adjusted against FD interest. Income from mutual organization is exempt therefore loss can not be adjusted against any other income.

- Tax rate will be the slab rate of individuals.

Hello,

Yes, you can adjust the excess expenditure to the interest income from the FDR.

Assuming your association is registered as AOP, individual slab rates would be applicable.

Regards,

CA Hunny Badlani

Loss from business can be set off against income from other sources. Yes income tax is payable on net income as per tax slabs applicable 

Hello Sir,

-Yes, you can adjust excess expenses against interest income.

-Individual slab rate would be applicable to your association.