Form 15G is a declaration made under section 197A of the Income Tax Act, 1961, to avoid the deduction of tax at source (TDS) on interest income. This form is typically used by individuals, Hindu Undivided Families (HUFs), and trusts. However, when it comes to cooperative housing societies, the situation is a bit different.
Bold Answer:
Yes, a cooperative housing society can submit Form 15G
Cooperative housing societies are eligible to submit Form 15G under certain circumstances. Let’s delve deeper into this topic and address some related FAQs.
1. Can a cooperative housing society submit Form 15G to avoid TDS on interest income?
No, a cooperative housing society cannot use Form 15G to avoid TDS on interest income. This form can only be used by individual taxpayers, HUFs, or trusts.
2. What is the reason behind this restriction?
The Income Tax Act does not provide the provision for cooperative housing societies to submit Form 15G because they are considered separate entities with their own unique tax obligations.
3. Can a cooperative housing society claim a refund for the TDS deducted on interest income?
Yes, a cooperative housing society can claim a refund for the TDS deducted on interest income by filing an income tax return. This allows them to adjust the TDS against their tax liability.
4. Are there any specific forms designed for cooperative housing societies to claim a refund?
No, there are no specific forms for cooperative housing societies to claim a refund for TDS deducted on interest income. They can use the regular income tax return forms, such as ITR-5 for AY 2021-22.
5. Do cooperative housing societies need to deduct TDS on payments to individual members?
Yes, cooperative housing societies are required to deduct TDS on certain payments made to individual members, such as interest on fixed deposits or any other payments exceeding a specified threshold.
6. How can cooperative housing societies deposit TDS deducted from payments to individual members?
Cooperative housing societies must deposit the TDS amount electronically using Form 26Q and generate Form 16A for the members to reconcile their TDS in their income tax returns.
7. Are there any exemptions available for cooperative housing societies regarding TDS deduction?
Yes, exemption under Section 194IA of the Income Tax Act is available for cooperative housing societies on certain payments made to resident members while purchasing immovable property, subject to specified conditions.
8. Can a cooperative housing society file an income tax return?
Yes, a cooperative housing society is required to file an income tax return if they have any taxable income during the financial year, irrespective of the amount.
9. What is the due date for filing income tax returns by cooperative housing societies?
The due date for filing income tax returns by cooperative housing societies is usually on or before the 30th of September following the end of the financial year.
10. Are there any penalties for not filing income tax returns by cooperative housing societies?
Yes, if a cooperative housing society fails to file income tax returns by the due date, they may be subject to a penalty of up to INR 10,000.
11. Can a cooperative housing society claim deductions for expenses incurred?
Yes, a cooperative housing society can claim deductions for various expenses incurred while computing their taxable income, such as repairs and maintenance expenses, property taxes, and common area electricity charges.
12. What are the consequences of non-compliance with income tax regulations by a cooperative housing society?
Failure to comply with income tax regulations can result in penalties, interest on late payments, and scrutiny by tax authorities, making it essential for cooperative housing societies to fulfill their tax obligations diligently.
In conclusion, while a cooperative housing society can submit Form 15G for individual members, they themselves cannot utilize this form to avoid TDS on their interest income. Cooperative housing societies have their specific tax obligations, including deducting TDS and filing income tax returns, which must be complied with to avoid penalties and scrutiny from tax authorities.