Surplus generated from collection of maintenance funds

We are an association of apartments and have collected 100 lacs for maintenance in the year 2015-16. Ort of this  100 lacs we spent 60 lacs for maintenance. Is the 40 lacs taxable?
Asked 6 months ago in Income Tax from Pune, Maharashtra
Dear Sir,

Any surplus generated due to these types of income is not chargeable to tax as it is exempt based on the ‘concept of Mutuality’.

However, there may be some other incomes which are taxable like income earned on investing the surplus in stock markets etc., rental Income from Advertisement Hoardings etc.

Please feel free to revert in case of any doubts.

Thanks and Regards,
CA Abhishek Dugar
caabhishekdugar@gmail.com
Abhishek Dugar
CA, Mumbai
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It may be emphasized that the society merely acts as an agent who collects this charges on behalf of members & spends the same to meet the various joint expenses of the society. Any surplus generated due to these types of income is not chargeable to tax as it is exempt based on the ‘concept of Mutuality’. 
Shyam Sunder Modani
CA, Hyderabad
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need to check the byelaws. Association will also be same. 
Shyam Sunder Modani
CA, Hyderabad
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Dear Sir,

It is exempt in case of Co-Operative Societies the amount is exempt.

Now to understand in case of association of apartments, we need to understand your modes-operandi first. 

1. How do you raise the bills ? In the name of Co-Op Society or Association of Appartments.

2. Is the Association registered ?

3. Do you have a PAN.

4. Is there a Common Bank

to name a few, unless the whole cycle is clear it is difficult to comment on the same.

Trust this clarifies your query. 

Please feel free to call/ get back in case of any further clarifications. 

Thanking You. 

Regards,
Rohit R Sharma
BCOM, ACA, LLB-GEN, CERT. FAFP
Rohit R Sharma
CA, Mumbai
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I think your query has been resolved to your satisfaction. Please let me know in case if this is not the case.
Abhishek Dugar
CA, Mumbai
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