A cooperative society requires to file its return of income in ITR-5 within 30th September.
Just like a Company, without filing a ‘loss return’ within the stipulated time, business loss and loss under the head capital gains of a cooperative cannot be carried forward. Loss under the head income from house property and unabsorbed depreciation also cannot be carried forward if loss return is not filed at all. It has to follow a slab rate for computing tax liability: Income up to Rs. 10,000 – tax @10%, Income from Rs. 10,001 to Rs. 20,000 – tax @20% and Income Rs. 20,001 onwards – tax @30%; The same implies, that if a society has any taxable income, it has to file a return of income. From AY 2014-15, like companies, cooperatives are also requires to pay surtax @ 10% when the profit exceeds Rs.1 Crore.
Apartment owners association has to get PAN in the name of association. Concept of mutuality helps apartment owners association to get 100 per cent tax relief on income earned from contribution and rentals paid by its members. But apartment owners association will have to pay income tax for rent received from non-members, advertisement of hoardings, rents from mobile or cable tower etc. Interest earned from deposits or interest on investments other than co-operative bank will attract income tax. If an apartment owners association does not have taxable income after deduction available, it should be proved and association has to file income tax return. It is always recommended to audit the books of accounts and maintain books of record for smooth functioning of association’s day-to-day affairs.