How is a housing society's interest income taxed?

Name: Vijay R Singh & Co.
Address: Office No. 4, Vishal CHSL, D Wing, Sir Mathuradas Vasanji Road, Azad Nagar, Opp. Andheri Gymkhana, Andheri East, Maharashtra, 400069, IN
Telephone: +91 98607 23959

CA Vijay R Singh, FCA
Chartered Accountant · ICAI M.No. 153926 · FRN 136869W

Short answerInterest a housing society earns on bank fixed deposits is taxable. Interest from deposits with a co-operative bank can qualify for a deduction under Section 80P(2)(d). The society reports this in its return and pays tax on the taxable portion.

Bank FD interest taxable

Interest from commercial-bank deposits is taxed in the society’s hands.

80P for co-op bank interest

Interest from co-operative bank/society deposits can be deductible under 80P(2)(d). Confirm current position.

Trusts & Societies

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This answer is general information for trusts and societies, not tax or legal advice. Tax rates, thresholds and forms change with each Finance Act — please confirm the current position for your own facts, or speak to us, before acting.