Chartered Accountant · ICAI M.No. 153926 · FRN 136869W · Reviewed on 7 October 2026
What section 81 actually requires
The society appoints the auditor at its AGM from the government panel for the next financial year; the audit must be completed within four months of the close of the year — in practice by 31 July — and the audited accounts, with the audit memorandum, go before the AGM due by 30 September (section 75). The auditor also awards an audit classification (A/B/C/D) that follows the society’s reputation in bank and redevelopment dealings. Societies that skip audit invite the Registrar’s powers — compulsory audit, inquiry, even supersession of the committee.
What the auditor goes through
Maintenance billing and collection, sinking and repair funds, the investment pattern (section 70 limits where society funds may sit), member registers, vouchers and tenders for major repairs, fixed deposits and bank reconciliations, and statutory registers. Most qualifications we see trace back to three habits: cash collections without receipts, repair contracts without quotations, and sinking-fund money parked in the wrong instruments.
Beyond the society Act: tax and GST
The society is also an income-tax assessee (an AOP) — it files an ITR; interest from co-operative banks has its own section 80P nuances. TDS obligations apply on contractor and professional payments. And GST enters only where both conditions are met: aggregate turnover above ₹20 lakh and monthly maintenance above ₹7,500 per member — and once maintenance crosses ₹7,500, GST applies on the full amount, not just the excess. Our audit practice handles section 81 audits and the society’s tax calendar together.