Every registered housing cooperative society or apartment association in India is required to comply with income tax laws, even if it earns limited income. Proper housing society tax filing helps avoid penalties, notices, and legal complications.
This Saving Mantra guide explains the step-by-step process for housing society tax filing in India in simple terms.
Is Tax Filing Mandatory for Housing Societies?
Yes. A housing society must file an Income Tax Return (ITR) if:
- It is registered under Co-operative Societies Act or Societies Act
- It earns income (maintenance, interest, parking, etc.)
- It has PAN (mandatory)
Even nil-income societies are advised to file returns for compliance.
Income Sources of a Housing Society
Common taxable and non-taxable income sources include:
- Maintenance charges from members
- Interest on bank fixed deposits and savings accounts
- Parking charges
- Non-occupancy charges
- Advertisement or mobile tower rent
Applicable ITR Form for Housing Society
- ITR-5 is applicable for housing societies
- Filed online on the Income Tax portal
- Requires PAN, financial statements, and audit details (if applicable)
Tax Rate for Housing Societies
Housing societies are taxed at:
- 30% flat rate (plus surcharge and cess), or
- Section 80P benefits, if eligible
Correct tax computation is essential to avoid excess tax payment.
Step-by-Step Process for Housing Society Tax Filing
Step 1: Obtain PAN and TAN
- PAN is mandatory for tax filing
- TAN required if TDS is applicable
Step 2: Maintain Proper Accounts
- Income & Expenditure Statement
- Balance Sheet
- Receipts and payment records
Step 3: Identify Taxable Income
- Separate member and non-member income
- Identify exempt income under Section 80P
Step 4: Calculate Tax Liability
- Apply correct tax rate
- Claim eligible deductions
- Adjust TDS credits
Step 5: Audit (If Applicable)
- Mandatory if income exceeds prescribed limits
- Audit report uploaded online
Step 6: File ITR-5 Online
- Login to Income Tax Portal
- Upload ITR-5
- Verify using DSC or EVC
Step 7: Preserve Acknowledgement
- Download ITR-V acknowledgement
- Keep records for future reference
Due Date for Housing Society Tax Filing
- 31st July – Non-audit cases
- 31st October – Audit cases
Late filing may attract penalty under Section 234F.
Common Mistakes in Housing Society Tax Filing
- Not filing return due to low income
- Ignoring interest income
- Wrong claim of Section 80P deduction
- Mismatch between books and ITR
- Missing audit requirement
Penalties for Non-Compliance
Failure to file tax returns may result in:
- Late filing penalty
- Interest on tax payable
- Income tax notices
- Disallowance of deductions
How Saving Mantra Helps Housing Societies
Saving Mantra provides complete tax filing and compliance support, including:
- PAN & TAN registration
- Accounting and audit coordination
- ITR-5 preparation and filing
- Section 80P advisory
- Handling income tax notices
We ensure accurate and stress-free housing society tax compliance.
Conclusion
Housing society tax filing is a mandatory compliance under Indian income tax laws. Following the correct step-by-step process helps societies avoid penalties and maintain legal transparency. With professional guidance from Saving Mantra, housing society tax filing becomes simple, accurate, and compliant.
Disclaimer
This blog is for informational purposes only and does not constitute tax or legal advice. Tax provisions and due dates may change based on government notifications. Readers are advised to consult qualified tax professionals before filing returns.