Is a housing society liable to income tax?

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 answerA housing society is taxable, but income from its own members — like maintenance contributions — is generally exempt under the principle of mutuality. Income from outsiders or from investments is taxable. Many societies also claim deductions under Section 80P.

Mutuality: member income exempt

Maintenance and similar member contributions aren’t taxed, as you can’t profit from yourself.

Outside income taxable; 80P

Interest, rent from outsiders, etc. are taxable; co-operative deductions under 80P may apply.

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.