Editorial Board :

Shri S.N. Sharma, MLA

Adv. M. Ebrahimkutty

Shri Y. Gopal Reddy

Shri Premjit Lal

Dr. M.L. Khurana

No part of this bulletin shouldbe reproduced without priorpermission of the Editor.

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The facts stated, conclusionsreached and views expressed inindividual contributions are of thecontributors concerned and arenot necessarily endorsed byNCHF.

Editor :Dr. M.L. Khurana

Joint Editor :N.S. Mehara

Technical Support :S.P. Kumar

Vol. XXVII No. 8 February, 2015

NCHF BULLETIN6A/6, SIRI FORT INSTITUTIONAL AREA, AUGUST KRANTI MARG,

NEW DELHI - 110 049 PHONE : 2649 0535

Board of Directors NCHF

ChairmanShri S.N. Sharma, MLA

Vice-ChairmenShri B.S. Manhas

Shri S.T. Somashekar, MLA

DirectorsShri Premjit Lal

Shri Anjan Dutta, MLA

Shri Y. Gopal Reddy

Shri Sukhbir Singh Panwar

Shri Nileshbhai Solanki

Shri R.K. Pikale

Shri C.M. Singal

Shri R. Selvam

Adv. M. Ebrahimkutty

Shri Gopal Bhargav

Shri Ravindra V. Gaigole

Shri B. Vasanthakumar

Shri H.S. Sidhu

Shri S.K. Bakoliya

Shri M. Sakthivel Murugan, Ex-MLA

Shri Mudit Verma

Shri Tapendra Mohan Biswas

Shri Sharad Shrivastva

Shri Lalit Kumar

Managing Director

Cover PageShri Mahadev Narayan Naik,Hon’ble Minister for Cooperation,Government of Goa inauguratingthe National Conference onAccounting, Income Tax & Audit forHousing Cooperatives held on 7thFebruary, 2015 at Panaji-Goa bylighting the lamp. (Report atpage 13)

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CONTENTS

1. From Editor's Desk ..........2

2. Income Tax and HousingCooperatives ....................3

3. Legal Column ................. 11

4. Snippets .......................... 13

5. 21oha 'krkCnh dh ekaxlgdkfjrkvksa esa ;qodksa dhvf/dre Hkkxhnkjh&MkW- Mh-ih- xxZ ............ 18

2 NCHF BULLETIN

FROM EDITOR’S DESK

INCOME TAX AND HOUSING COOPERATIVES

Cooperatives are based on deep rooted value system and principles which undoubtedly has broughtunprecedented success to them. All the physical, psychological and emotional forces constitute man, which inevitablylead to collective living; As they say ‘United We Stand, Divided We Fall’, therefore division of labour and cooperationare basic attributes and a reality of human existence. A member of a true cooperative thinks and acts in termsof community of interests and through promotion of common interests of all the other members, promotes his owninterests. Mutual help and inter-dependence of the units are the essential ingredients of social life. It is a combinationof several individuals to obtain by their united energies and strength the advantage of large scale dealing inproduction, distribution, credit, housing and other specialized sectors. It is based primarily on the economic truththat the larger the unit the greater the economy in working, and greater the mass of the capital, the moreconfidence it will command.

The Cooperative Movement is providing useful services particularly to masses with limited means. It providesstrength to the common man to become self-reliant through democracy and voluntary service. The food securityachieved by India at present is due to an effective role played by cooperatives. The cooperative credit and bankinginstitutions are providing significant amount of agricultural credit to boost investment in agriculture. In quest of valueaddition, the achievements of marketing and processing cooperatives are well known; the shining example of dairycooperatives showcase the success of cooperative efforts of timid dairy farmers not only in India but across theworld. Consequently, the Indian cooperative movement has improved the living conditions of workers, fishermen,daily-wage labour, weavers, women etc. by drawing them out of the vicious circle of poverty by providing themgainful employment.

Housing cooperatives occupy a unique position in the entire spectrum of the Cooperative Movement. Theprimary objective of a Housing Cooperative is to provide to its members suitable accommodation at a reasonablecost. In pursuit of this objective, the tasks at hand for housing cooperative starts from securing land, drawing plans,appointing architect and contractors, obtaining loans and executing the construction work. While treading thesephases, a housing cooperative has to deal with a number of laws and norms; in turn, at times, is caught in theintricate legal problems. Experience shows that working of housing cooperatives sometimes gets adversely affectedon account of legal problems which arise out of various enactments, rules and regulations passed or made by theCentral and State Governments from time to time. The Income Tax Act is one such law which needs to be compliedby housing cooperatives.

There is a general perception that income of Cooperative Societies is non-taxable. Many of the cooperativeswhich are not exempted from income tax, avoid tax or evade tax or ignorant about tax liability. Housing cooperativeswhich are either fully taxable or partially taxable are not an exception to this. Many of the housing cooperativesare not filing returns or pay Income tax and are reluctant to accept the income tax liability on them. Albeit,interference by Income Tax Department in the matters of housing cooperatives is less but that does not imply thatone may get rid of tax forever. This is likely to create hurdles in the years to come as the Tax Department istightening their rules and regulations with heavy interest and penalties for the tax evaders. There has been a spikein the number of notices being served on various assesses for varied reasons. To avoid such difficulties and torun the business smoothly, the housing cooperatives should learn and update themselves with various provisionsof income tax applicable to them. In view of the stated fact the NCHF in collaboration with the Institute of CharteredAccountants of India (ICAI) and Goa State Cooperative Housing Finance & Federation organized a NationalConference on ‘Accounting, Income Tax & Audit for Housing Cooperatives’ on 7th February, 2015 at Panaji, Goa.The Conference dealt in detail the ‘Income Tax Compliance for Cooperative Housing Societies’; ‘Accounting byHousing Cooperatives’; ‘Importance of Internal Control & Internal Audit in Cooperative Housing Societies & AuditCompliance in Cooperative Housing Societies’; and ‘Service Tax and Vat Compliance for Cooperative HousingSocieties’. This National Conference attended by experts in the field lucidly brought the tax implications of differentforms of housing cooperatives. Simplified interpretation of Income Tax Law is not available to members of housingcooperatives who are normally providing honorary services to cooperatives. This Conference has turned out to beof great benefit to members, office-bearers and all those who are handling Accounts of housing cooperatives.

FEBRUARY, 2015 3

INCOME TAX AND HOUSING COOPERATIVES

INTRODUCTION

There is a general perception that income ofCooperative Societies is not chargeable to tax. Many ofthe cooperatives which are not exempted from incometax, avoid tax or evade tax or ignorant about tax liability.Housing cooperatives which are either fully taxable orpartially taxable are not an exception to this. Many of thehousing cooperatives are not filing returns or pay Incometax and reluctant to accept the income tax liability onthem. Of course, interference by Income Tax Departmenton housing cooperatives may be less but that does notmean that they may get rid of tax forever. This is likely tocreate lot of difficulties in the years to come as the TaxDepartment is stringing their rules and regulations withheavy interest and penalties for the tax evaders. Therehas been a spike in the number of notices being servedon various assesses for varied reasons. To avoid suchdifficulties and to run the business smoothly, housingcooperatives should learn and update themselves withvarious provisions of income tax applicable to them. Thisarticle lucidly brings in the tax implications of differentforms of housing cooperatives at the primary levelcategorizing the tax provisions into four parts viz. TaxingCooperative Societies, TDS, Tax Audit and Calling ofInformation.

PART 1: TAXING COOPERATIVE SOCIETIES

Like other taxpayer, certain cooperatives aresubjected to income tax on their incomes from differentsources. According to Section 2(19) of the Income TaxAct, 1961, cooperative society means a society registeredunder the Cooperative Societies Act, 1912, or under anyother law for the time being in force in any State for theregistration of cooperative societies. There is a separatetax rates slab given for the cooperatives which arecontained in annual Finance Act. Cooperative society isconsidered as body corporate and is assessed in thestatus of Association of Persons. Income of a cooperativesociety other than the surplus from contribution bymembers complying with the concept of mutuality is taxablesubject to the deductions u/s 80P.

1.1 Income of Housing Cooperatives

The income of housing society can be grouped intotwo heads i.e. contribution from members and income

from non-members. The surplus arising out of contributionsfrom members is not a taxable income as the same isgoverned by the concept of mutuality. Any income derivedfrom business dealings with non-members is fully taxable.

1.2 Contribution from Members

Certain income l ike maintenance charges,municipal taxes, electricity charges, lift maintenancecharges, water charges etc. are the contribution frommembers of a housing cooperative. Also, the interestcharged by the society on outstanding dues of membersforms part of contribution from members. These moniesare spent by the society to meet various joint expenseson behalf of the members merely as an agent basis.Any surplus generated from these types of income isnot chargeable to tax as it is exempt based on the‘Concept of Mutuality’. When persons forming a groupand associate together for a common object andcontribute money for achieving that object and dividethe surplus amongst them underlines the concept ofmutuality. The concept of mutuality is based upon thefact that no person can earn profit out of himself.

Conditions for getting the income exempted on thePrinciple of Mutuality

1) There must be a complete identity between thecontributors and participators.

2) The actions of the participators and contributors mustbe in furtherance of the mandate of the society.

3) There must be no scope of profiteering by thecontributors from a fund made by them which couldonly be expended or returned to themselves.

1.3 Tax Incidence of different types of HousingSocieties

Housing cooperatives at the primary level can bebroadly classified into four groups as detailed below:

1.3.a Tenant Ownership Housing Societies: Under thiscategory the land is held either on leasehold or freeholdbasis by societies, and houses are owned by members.These types of societies are prevailing in some of theStates like Maharashtra, Goa, Delhi, Rajasthan, etc. In

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this type members take the land on lease. The leasestipulates strict conditions against sub-letting and otherforms of profiteering. Houses are built to suit the needsof every member. A member constructs his house on theplot allotted to him as per the plan approved by societyor he may make the society to undertake construction onhis behalf. When society constructs, the member mayeither pay full cost of house and pay only the nominalrent as lease holder or may pay the value of the houseby instalments and after fully paying the cost, he obtainsthe lease on a nominal rent.

Tax Liability

When the housing society charges lease rent onlyfrom members as stated in the bye-laws, it is exemptedunder the principle of mutuality.

1.3.bTenant Co-Partnership Housing Societies: Theseare societies which hold land on ownership or on leaseand construct flats thereon which are allotted to memberswho occupy them. Members have only a share in theproperty as a whole and no claim to a particular house.In such a case, the society is deemed to be the landlordand the members are tenants. These types of societiesare prevailing in some of the States like Maharashtra,Goa, Delhi, Rajasthan, etc. Under this type of society, theconstructed Flats/Apartments are regulated and maintainedby the managing committee of the society. Members payto society charges which includes not only the rent for thehouse allotted but also the contribution towards the sinkingfund of the society.

Tax Liability

There are certain types of cooperatives, like housingcooperatives, who collects monthly subscription frommembers and spends the same to meet the various jointexpenses of the society to give service to members likemaintenance, security etc. In this process even if anysurplus is generated, it is not chargeable to tax as it isexempt based on the ‘Concept of Mutuality’. The cardinalrequirement in case of mutual association is that ‘All thecontributors to the common fund must be entitled toparticipate in the surplus and all the participators to thesurplus must be contributors to the common trade.’ Thusif the society earns any income from non members asparking fee, rental income by letting roof for mobile towers,etc. then all these incomes are chargeable to tax.

1.3.c House Mortgage Societies: These societies lendmoney to their members for construction of houses. Themembers have to make their own arrangements forbuilding their houses. These types of societies are reallycredit societies as distinguished from other credit societiesas per the objects for which they lend, the duration of the

loan and the security they demand. These types ofsocieties are prevailing in some of the States like Kerala,Maharashtra, Goa, Rajasthan, etc.

Tax Liability

If the society disburses loans to members using onlyits own funds and deposits mobilized from members, theincome generated out of such activity is exempt from taxunder the principle of mutuality. Alternatively, if the societyreceives borrowings from housing federation or from otherfinancial institutions for disbursing the same as loan, theincome generated out of such business is taxable. In case,if the loans are disbursed using both the monies ofmembers and outside borrowings, the proportionateincome generated out of lending out of outside borrowingsis taxable. However, the taxable housing societies canclaim eligible deductions u/s 80P of the Act.

1.3.dHouse Construction or House Building Societies:Societies of this type spend money on behalf of themembers for building the houses, and the houses arehanded over to members when ready and the moneyspent is recovered as loan. These types of societies areprevailing in some of the States like Maharashtra, TamilNadu, Goa, Rajasthan, Kerala, etc.

Tax Liability

Similar to house mortgage societies, theproportionate income generated out of lending out ofoutside borrowings is taxable.

In general the perception is that income of acooperative housing society is not chargeable to tax sincethe word Cooperative is there and the members feel thatthe entire income is exempt , income tax provisions likefiling of the return, payment of advance tax, deduction ofTDS from certain payments etc. are also not applicable tothe cooperative housing society

However, the only Tax free income as mentioned u/s10 of the Income Tax Act,1961 to be exempt from tax is :

Income of a cooperative society formed for promotinginterest of members of scheduled castes/tribes u/s10[(clause(27)]

1.4 Tax Liability of other incomes of HousingCooperatives

1.4.a Rental Income from Hoardings

This is fully taxable under the head Business Income.However all direct and indirect expenses which areincurred in maintaining the hoarding facility can be claimedon a proportionate basis as expenses against its income.

FEBRUARY, 2015 5

1.4.bRental from Cable Towers etc.

Rental income from letting for cable towers is taxableunder the head Income from House Property. Actualexpenses except tax paid to local authorities like municipaltax, etc. (proportionate amount of tax on the area let out)and unrealized rent is deducted from the rent receivablefor a year. From the balance amount, a standard deductionof 30% is deducted. In case if there is interest paymentfor the borrowed funds for constructing the let out property,the proportionate interest for the area let out is deductedto arrive at the taxable house property/rental income.

1.4.c Rentals from use of Open Spaces/Terrace

If the rentals for use of open space or terrace arecollected from members, the same is exempted on thegrounds of “Mutuality”. If the rentals are received fromnon-members, the same is fully taxable under the headIncome from House Property and will be computed similarto rental from cable towers stated above.

1.4.dNon-Occupancy Charges

Though non-occupancy charges are being collectedfrom members in their periodic bills the Income TaxDepartment’s view point has been that this amount isreceived from a members who has not been staying inthe premises of the society. Therefore though he is acontributor he is not enjoying the amenities of the societyis thus not a participator. Considering the same, themutuality concept is not satisfied and therefore ischargeable to tax.

However this view point is debatable and can alwaysbe argued in society’s favour as in some of the courtscase’s the ruling given is that “While comparing thecontributors and participators in concept of mutuality theyshould be compared as a class an not isolated or individualcontributors”.

In Mittal Court Premises Co-op. Society vs. ITO320 ITR 414, the Bombay High Court held that non-occupation charges paid by a member to a commercialcooperative society was covered by the principle ofmutuality and so was not chargeable to tax.

1.4.e Parking Charges

In case of collections from members they are coveredby concept of Mutuality. However parking chargescollected from outsiders would be taxable.

1.4.f Transfer Fees

During the sale of a house, the society collects a fee

from the member, which can be a specified fixed amount,or a specified percentage of the Sale Price of the Property.This is called Transfer Fee. Some housing societies chargetransfer premium in strict compliance with the provisionsof their bye-laws, whereas some housing societies chargemore fees by various modes like changing the head ofcollection from transfer premium to donations, contributionto amenities fund, repairs fund, etc. In a judgment ofBombay High Court in 2009, it was confirmed that transferfees received by Cooperative Housing Society fromincoming and outgoing members as mentioned in its Bye-laws is exempt from tax. The transfer premium paid bythe transferor is covered by concept of mutuality, astransferor was a member of the society.

Whether premium received by a cooperative societyon transfer of premises belonging to an old member to anew member would be included within mutuality orotherwise was a disputed area. Special Bench of Tribunalin the case of Walkeshwar Triveni Cooperative HousingSociety 88 ITD 159 (SB) noted that under its model bye-laws of 1984 transfer premium was restricted to Rs.25,000.The transferor and transferee each had paid Rs.12,500.Tribunal noted premium collected was as per its bye-lawsand accepted that the cooperative housing society was amutual association whose motive was service to itsmembers and incidentally if some profit resulted it wasdistributed amongst its members. By charging premiumwithin the framework of the law, no profit motive can beattributed to the housing society. The Special Benchobserved that if premium is collected by malpractices underdonation, welfare funds, common amenities fund, etc.which is in excess of the legal limits, then profit motivecould be attributed and mutuality would cease. InWalkeshwar, when the premium was received from thetransferee, he was not its member and therefore thetransfer premium paid by him would not be covered undermutuality.

In Calcutta High Court in CIT vs. Apsara CHSLtd.204 ITR 662 and the Gujarat HC in Adarsh CHSLtd.213 ITR 677 held that the transfer fee received bythe cooperative society is not taxable in the hands of thesociety on the grounds of mutuality It is not necessarythat the individual identity of contributors and participatorsto the common fund should be established. Such identityshould be established between the class of contributorsand the class of participators.

This principle is indirectly confirmed by the SupremeCourt’s judgment in the case of CIT vs. Bankipur ClubLtd. 226 ITR 97

In Sind Co-operative Housing Society vs. ITO317 ITR 47 (Bom) it was held that if any amount hasbeen received beyond the amount notified by the

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Government, the principle of mutuality would not applyto that amount.

1.5 Deduction of Depreciation

The rate of depreciation charged by housingcooperatives for their assets are comparatively lower thanthe rates allowable under Income Tax Act. The societieshave provision to deduct the excess of allowabledepreciation from their Net Profit. First, the depreciationcharged by the society is added with the Net Profit as perProfit and Loss a/c and the allowable depreciation as perthe Income Tax Act (vide Appendix 1 & 1A to the IncomeTax Rules) is deducted.

1.6 Payments exceeding Rs.20,000 in Cash

As per Section 40A(3) of the Income Tax Act, if anypayment exceeding Rs.20,000/- is made otherwise thanby an account payee crossed cheque or draft, the entireamount is disallowed. This means, if a society pay morethan Rs.20,000 by cash, the entire amount is disallowedand liable to pay tax even for these payments. Thisprovision shall not apply in respect of expenditure forwhich no deduction is claimed. For example, if a machineryis purchased by remitting cash, no disallowance can bemade u/s 40A(3) as the society is not claiming anydeduction from the income for the machinery purchased.However, no disallowance will be made by paying in cashof any amount more than Rs.20,000/- for the followingpayments:

– Payment made to banking including cooperativecredit societies

– Payment made to both Central and StateGovernments including payment of taxes, excise,railway freight, etc.

– Payment through the banking system, e.g., letters ofcredit, mail or telegraphic transfer

– Purchases of capital asset by paying more thanRs.20,000 in cash is allowable expenditure

– If a society makes payment of two different bills(none of them exceeds Rs.20,000) at the same timein cash considered to be allowable expenditure.

1.7 Expenditure claimed without TDS

As per Section 40(a)(ia), the expenditure will bedisallowed from computation of business income of thedeductor if TDS (i.e. TDS on interest, rent, commission,professional fee and contract payment) is not made ortax deduced has not been paid on or before the due datefor filing of income. The above expenditure will be allowedas a deduction in the year in which such TDS has beenpaid.

1.8 Computation of Taxable Income

Income of a housing cooperative is computed underfour heads namely House Property, Business, CapitalGains and Other Sources. Compute taxable income ofthe financial year under each head of income separately.The aggregate income under these heads is termed asGross Total Income (GTI). From GTI, subtract, “deductions”mentioned in Chapter VIA of the Income Tax Act. Theresult will be the net income. Compute income tax payableon the net income. Add surcharge when the net incomeexceeds Rs.1 crore computed on tax payable. AddEducation Cess on the tax payable plus surcharge. Addinterest payable to reach total tax. Deduct the amount ofprepaid taxes, if any, like “tax deducted at source”,“advance-tax” and “self-assessment-tax”. The result willbe the tax payable (or refundable). There are differentdeductions available from the GTI from Section 80G to80P. Important deductions applicable to housingcooperatives are given below:

1.8.a Donation [Section 80G]

All donations paid by housing cooperatives are nottreated as expenses as far as income tax computation isconcerned. Only those donations made to certain approvedinstitutions/purposes such as Contribution to NationalDefence Fund set up by the Central Government, PrimeMinister’s Drought Relief Fund, National Foundation forCommunal Harmony, Zila Saksharta Samiti, Fund set upby a State Government for the medical relief to the poor,Army Central Welfare Fund, the Chief Minister’s ReliefFund or the Lieutenant Governor’s Relief Fund, NationalSports Fund, etc., are shown as expenses and the otherdonations are taxable.

1.8.bDeduction for Housing Projects aided by WorldBank [Section 80HHBA]

Section 80 HHBA of Income Tax Act provides thatany profit derived by a housing cooperative from theexecution of a housing project awarded to it on the basisof global tender and such project is aided by the WorldBank is eligible for a deduction of 50% of such profitgenerated on such projects. For the purpose of thisSection, “Housing Project” means a project for theconstruction of any building, road, bridge or other structurein any part of India. For claiming deduction, the societyshould maintain a separate account in respect of the profitsderived from the business of the execution of the housingproject undertaken.

1.8.c Deduction for promoting Housing Projects[Section 80-IB (10)]

Section 80-IB (10) of the Act is aimed at

FEBRUARY, 2015 7

promoting construction of housing projects, so as toaddress the problem of shortage of dwelling units. Thepredominant objective of this incentive provision, therefore,is to encourage better availability of the dwelling units forlow and middle class segment of the society. Section 80-IB(10) of the Act provides that the housing society engagedin developing and building housing projects shall be entitledto claim 100% deduction of the profit derived in theprevious year from such housing projects if the undermentioned conditions are satisfied:

(i) Building plan should have been approved from thelocal authority like corporation or a municipality. TheCentral Board of Direct Taxes (CBDT) clarified videCircular F. No. 205/3/2000/ITA II dt. 4-5-2001 that“any project which has been approved by a localauthority as housing project should be consideredas adequate for purpose of this section.”

(ii) The period allowed for completion of a housingproject for availing the tax benefit u/s 80IB is 5 yearsfrom the end of the financial year in which the housingproject is approved by the local authority.

(iii) The size of the plot of land should be minimum 1acre.

(iv) The buildup area of the shops or other commercialestablishments shall not exceed 5% of the aggregatebuild up area of the project or 2000 squarefeet whichever is less. In case of housing projectsapproved by the local authority on or after 1-4-2005,the built-up area of the shops and other commercialestablishments included in such housing project couldbe either 3% of the aggregate built-up area of thehousing project or 5000 square feet, whichever ishigher.

(v) The maximum build up area of the residential unitshould be 1000 square feet for the projects withinthe cities of Delhi and Mumbai and 25 kilometresfrom the local limits of the above mentioned citiesand at any other place 1500 square feet.

(vi) The society should file the return of income beforethe due date of filling return under Section 139(1) ofthe Act and deduction under Section 80-IB of theAct should be claimed in the return of income.

(vii) The submissions of completion certificate from localauthority is mandatory for claiming deduction. Fornon submission of certificate the assessee is notentitled to deduction as per the decision of SainathEstates (P) Ltd. v. DCIT, 88 DTR 11.

1.8.dStandard Deduction [Section 80P(2)(c)]

All Cooperative Housing Societies earning businessincome qualify for a standard deduction u/s 80 P(2)(c) ofRs.50000/- on its Gross Total Income. This deduction can

be claimed against business income and not againstinterest or any other income.

1.8.e Interest and Dividend received [Section 80P(2)(d)]

Interest income earned by housing cooperatives fromanother cooperative society/bank qualifies for 100%deduction u/s 80P(2)(d). Similarly, dividend received fromother Cooperative societies/banks qualifies for 100%deduction under 80P(2)(d).

1.8.f Rental Income of Godown [Section 80P(2)(e)]

The whole of the income derived by a housingcooperative from letting of godowns and warehouses forstorage, processing or facilitating the marketing ofcommodities are fully exempted from tax u/s 80P(2)(e).The societies which plan to let out its building should optfor a tenant doing the above said activity.

1.9 Tax Rate Slab

Income tax is calculated according to the rates givenin the relevant Finance Act. Provisions for computation oftaxable income are given by the Income Tax Act. However,the tax rates are not given by the Income Tax Act, but bythe Finance Act which is passed by Parliament along withbudget of the Central Government every year. Firstdetermine net income and tax payable thereon at therates given below. The following rates are applicable toall cooperative societies including housing cooperativesfor the financial year 2014-15:

Net Income Range Rate of Tax (%)

Up to Rs.10,000 10%Rs.10,000 - Rs.20,000 20%Rs.20,000 and above 30%

Further, in case of societies having turnoverexceeding Rs. 1 crore, surcharge at 10% on tax is leviedadditionally from the financial year 2013-14 onwards.However, the surcharge is subject to a marginal relief i.e.if a society having a net income exceeding Rs.1 crore,the amount payable as income tax and surcharge shallnot exceed the amount exceeding Rs.1 crore. With theabove computed tax amount (i.e. tax plus surcharge),Education Cess (primary education 2% and secondaryeducation 1%) is payable at 3% on tax plus surcharge (ifany).

1.10 Mode of Payment of Tax

Housing cooperative pay income tax by filling up aSelf Assessment Challan (Challan No. 280) and remit iteither in the income tax office directly or in any nationalizedbanks. However, E-payment (online tax payment) is

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mandatory from 1.4.2008 for all societies whose accountsare audited u/s 44AB. This includes even the payment ofadvance tax.

1.11 Advance Tax

For societies whose tax payable is Rs.10,000 ormore, it is obligatory to pay advance tax in 3 instalmentsin the relevant financial year itself. The ceiling amount ofRs.10,000 is arrived by deducting TDS if any paid by thesociety. If the net amount (Tax liability minus TDS) isRs.10,000 or more, then advance tax payment becomescompulsory. The details are given below:

Time limit Advance taxPayable

On or before September 15 of the up to 30% ofprevious year the tax payable

On or before December 15 of the up to 60% ofprevious year the tax payable

On or before March 15 of the up to 100% ofprevious year the tax payable

In case of societies not complying with advance taxpayment, penal interest under Sections 234B and 234Cat the rate of 1% per month on tax in both the cases islevied. However, no penal interest is levied where theadvance tax paid is 90% of the total tax payable.

1.12 Filing of Returns

When a society’s income exceeds the maximumamount which is not chargeable to income-tax before grantof deduction under Chapter VIA of the Act, it is liable tofile income tax return compulsorily. The returns have tobe submitted on or before the due date prescribed u/s139(1) of the Act i.e. 30th September of the AssessmentYear (Assessment year means, the year following thefinancial year). For the year 2014-15, the returns have tobe filed on or before 30th September 2015. Societieswhose accounts are liable to audit under Section 44ABshall compulsorily furnish the return by furnishing the returnelectronically.

If the return of income is not furnished in due date,then the society is liable to pay penal interest at 1% permonth or part of month, calculated under simple intereston tax payable (Section 234A). Sections 80 and 139(3) ofthe Income Tax Act provides that for carry forward oflosses, the taxpayer should file the return of income withinthe due date allowed u/s 139(1). In case where a housingcooperative suffered loss and fails to submit its returnwithin the due date, it shall not be eligible to carry forwardthe losses for adjusting the same in the profit of thefollowing years. Further, in both the cases, the society is

liable to pay a penalty of Rs.5000/- (Section 271F). If asociety files the loss returns in time, it may carry forwardits shown loss to the subsequent 8 years and adjust thesame with the profit generated in those subsequent years.

Income Tax Return form to be used is ITR-5 and thecooperative societies are taxed as AOP.

1.13 Permanent Account Number

Every society is required to have PAN as it ismandatory to quote PAN on all correspondence withincome tax authority. The Assessing Officer shall notaccept Income Tax Returns unless the societies hadreceived or applied for PAN. The PAN has to be quotedin all correspondence with the Income Tax Departmentand on all tax documents, which include returns,challans, appeals, etc. This shall help the Income taxDepartment to give quicker service and maintain thebank’s accounts and records accurately. Penalty ofRs.10,000/- is imposable u/s 272B for failure to complywith the PAN.

1.14 Accounting of Provision for Tax

There are two methods of accounting transactionsviz., cash system and accrual system. The generallyaccepted accounting practice is to follow the accrualsystem. Since the housing cooperatives are required tofollow accrual system of accounting, expenses relating tothe current year have to be accounted in the current yearitself even if is not paid during the year. According toaccrual concept, all incomes (received and accrued) andall expenses (paid and outstanding) should be accountedfor. Therefore, payment of income tax pertaining to anaccounting year but payable during the next year shouldbe provided in the books as provision for tax or incometax payable or outstanding income tax and shown asexpenditure in the current year itself.

PART 2: TAX DEDUCTION AT SOURCE

Tax Deduction at Source (TDS) is one of the modesof collection of taxes, by which a certain percentage ofamounts are deducted by a person at the time of making/crediting certain specific nature of payment to the otherperson and deducted amount is remitted to theGovernment account.

Housing cooperatives which make payments whichare subject to TDS have to deduct in the prescribed rateand remit the amount to the income tax account withinthe prescribed time. The payments which attract TDS forhousing cooperatives along with the details of rate of TDS,due date to deposit TDS, due date to issue Form 16 and16A, due date for filing returns, penalty and interest

FEBRUARY, 2015 9

provisions for late deposit of TDS, who should and shouldnot deduct TDS, etc. are detailed below:

2.1 Salaries [Section 192]

When a housing cooperative pay salary exceedingRs.2,50,000 to its employees, it is responsible to deducta certain portion of amount from their salary as tax (ifany). An estimated tax payable has to be computed forevery employee and the society has to deduct the amountof tax (if any) every month from the employees’ salary.The tax has to be calculated by computing the incomefrom salary by accommodation of available deductionsunder Sections 24, 80C, etc. Surcharge on Income-tax ischargeable only in case of net income exceeds Rs.1 crore.Education Cess of 3% (2% for primary education and 1%for secondary education) is chargeable on income taxand surcharge. However, for TDS purpose, surcharge andeducation cess is not chargeable for payments other thansalary. Every society having any employee getting a salaryexceeding Rs.2,50,000 in a year has to issue to theconcerned employee, Form 16 within 31st May of theAssessment year and should file the Quarterly Returns inForm No.24Q, accommodating the details of all theconcerned employees.

2.2 Interest on Time Deposits [Section 194A]

The interest on time deposits paid or credited by ahousing society in excess of Rs.5,000 per year falls underTDS and should deduct 10% of tax. Time deposit meansdeposits (excluding recurring deposits) repayable on theexpiry of a fixed period. Section 194A(3)(viia) states thatthe interest paid or credited on deposits other than timedeposits with a cooperative society not stated above shallbe exempted from tax deduction. Housing cooperativesmay make use of Forms 15G and 15H which are the self-declaration given by the depositors showing that they don’thave such quantum of income which falls under incometax liability.

2.3 Payments to Contractors or Sub-contractors[Section 194C]

Many housing cooperatives deal with constructionactivities. When societies pay in respect of a contractwork (contract or sub-contract), a sum exceedingRs.30,000 should deduct tax at the below mentioned rates(Section 194C):

When the deductee is an individualcontractor/Sub-contractor : 1%For other deductees : 2%For Non providing of PAN No. : 20%

TDS is deductible on total payment including service

tax. Where a contract is given on piece rate basis withoutany stipulation regarding the total payment of such work,income tax has to be deducted if the total payment underthe contract is likely to exceed Rs.30,000 for the entireperiod during which the contract will remain in force. Wherepayments are made under several contracts during afinancial year and the consideration for any individualcontract does not exceed Rs.30,000, no deduction isrequired to be made under this section though the totalpayments exceeds Rs.30,000. However, when theaggregate of the amounts paid/credited to a single contractexceeds Rs.75,000 during the financial year, TDS has tobe made u/s 194C even it pays to the contractor anyamount less than Rs.30,000.

The housing cooperative shall not deduct tax forpayments made to any contractors during the course ofbusiness of plying, hiring or leasing goods carriages onfurnishing of the PAN of the operator.

2.4 Rent [Section 194I]

Housing cooperatives are responsible to deduct taxat source if it pays rent to any person of an amountexceeding Rs.1,80,000 in a financial year. The rate ofTDS is 10%. Tax is deductible on total payment excludingservice tax in case of payment of rent vide Circular4/2008 dt.28.4.2008. No TDS if the payee is thegovernment or local authority.

2.5 Professional Fees [Section 194J]

Housing cooperatives pay professional (i.e.managerial, technical or consultancy) fees to CharteredAccountants for tax audit, payment to Advocates for gettinglegal opinions, etc. If the professional fee paid to anyperson exceeds Rs.30,000 in a financial year, the societyshall deduct tax at source at the rate of 10%. This rate isapplicable on total payment and any reimbursement cannotbe deducted out of bill amount. Tax shall be deducted atthe time of credit of such sum to the account of the payeeor at the time of payment, whichever is earlier.

2.6 Commission and Brokerage [Section 194H]

Housing cooperatives paying any commission orbrokerage to any person exceeding Rs.5,000 per annumhave to deduct tax at 10% for services rendered (otherthan professional services).

2.7 Quoting of PAN of Deductees

Housing cooperatives are required to file TDS returnsin Form 24Q for salaries and Form 26Q for otherpayments. These forms require details of name and PANof parties from whom tax was deducted. The Income Tax

10 NCHF BULLETIN

Department vide circular No.402.92/2006-MC(10 of 2008)dated 12.2.08 directed all assesses including cooperativesto comply with quoting of minimum of 95% of PAN ofparties in case of Form 24Q and 85% in case of Form26Q for accepting the quarterly returns filed. Societiesare therefore compelled to obtain correct PAN of majorityof its deductees and quote the same in its TDS returns.Tax would be deducted at 20% in all cases (except thepayments to NRIs, where the tax rate is 30%) where thedeductees fail to furnish their PAN.

2.8 Due date to Deposit TDS

Housing cooperatives making payments to thirdparties are required to deduct tax at source for certainpayments and deposit the same at any of the designatedbranches of banks authorized to collect taxes on behalf ofGovernment of India. Housing cooperatives which arefalling under compulsory tax audit are required to depositthe deducted tax online using the web site: https://onlineservices.tin.nsdl.com/ etaxnew/tdsnontds.jsp

All sums deducted by Cooperatives shall be paid tothe credit of the Central Government:

(a) on or before 30th day of April where the income oramount is credited or paid in the month of March; and

(b) in any other case, on or before seven days from theend of the month in which the deduction in made

If a society suppose to deduct tax, fails to deductthe tax a penal interest of 1% p.m. is levied and if failsto remit the deducted tax is penalized at 1.5% per month.Further, if a society fails to deduct tax, a sum equal toamount of tax not deducted would be levied as penaltyu/s 271C. Furthermore, in case of failure to remit the taxdeducted, rigorous imprisonment ranging from 3 monthsto 7 years and fine can be levied u/s 271B.

2.9 Issuance of TDS Certificate

Societies should issue TDS certificate either in Form16 or Form 16A wherever applicable, to the deducteescertifying to the effect that a certain sum of tax is deducted.Form 16A should issue downloaded TDS certificates (fornon salary TDS) taken from the TIN-NSDL website.However Form 16 pertaining to salary can be issued eithermanually or by downloadable form from TIN-NSDL site.Failure to issue TDS certificate in time attracts penalty ofRs.100 for every day during which the failure continues,but the penalty shall not exceed the amount of taxdeductible.

2.10 Filing of TDS Returns

Housing cooperatives should file quarterly statement–

(i) in Form No. 24Q in respect of salary TDS and (ii) inForm No. 26Q in respect of other TDS, on or before 15thJuly, 15th October, 15th January in respect of the firstthree quarters of the financial year and on or before the15th May following the last quarter of the financial year.The following cooperatives are liable to file Online or inelectronic mode mandatorily E-TDS return vide NotificationNo. 238/2007, dated 30.8.2007 :

– Housing Cooperatives required to get its accountsaudited under Section 44AB in the immediatelypreceding financial year; or

– The number of deductees’ of housing cooperatives,in a quarterly statement for any quarter of theimmediately preceding financial year is equal to ormore than twenty.

If the above two conditions are not applicable toCooperative Housing Society then the E-TDS return canbe filed either in paper format or electronically.

Failure to file quarterly returns within time prescribedmay be liable to penalty which shall not be lessthan Rs.10,000 but which may extend to Rs.1,00,000u/s 271H(1)(a).

W.e.f.1st July,2012, failure to file quarterly returnswithin prescribed time , the cooperative Housing societywill also be liable to pay by way of fee u/s 234E, a sumof Rs.200 for everyday during which the failure continues.However, the fees shall not exceed the amount of taxdeductible/collectible. This fees will be in addition to otherconsequences under the Income Tax Act.

2.11 Tax Deduction Account Number (TAN)

Housing cooperatives deducting TDS should applyfor TAN in Form No.49B at the TIN Facilitation Centersestablished by NSDL or can apply online, within one monthfrom the end of the month in which tax was deducted.Under Section 203A of the Income Tax Act, 1961, it ismandatory to quote the 10 digit TAN allotted by the IncomeTax Department in all TDS returns and Challans whiledepositing the tax. In case of failure to apply for TAN intime or failure to quote allotted TAN or wrong quoting ofTAN, a penalty of Rs.10,000 is leviable u/s 272BB foreach failure.

PART 3: TAX AUDIT

Income Tax Act requires every cooperative societywhose total sales, turnover or gross receipts in businessfor any accounting year exceeds Rs.1 crore, to get itsaccounts audited on compulsory basis under Section44AB. Housing cooperatives undertake statutory audit

(Contd. on page 16)

FEBRUARY, 2015 11

LEGAL COLUMN*

* Compiled by Shri Tuhin, Advocate, Supreme Court.

SUPREME COURT OF INDIA(BEFORE THE HON’BLE JUSTICE FAKKIR MOHAMED IBRAHIM KALIFULLA

AND SHIVA KIRTI SINGH, JJ)

Sree Balaji Nagar Residential Association ……AppellantVs.

State of Tamil Nadu & Ors. ……Respondents

(CIVIL APPEAL NO.8700 OF 2013 WITH CIVIL APPEAL NOS.8701 OF 2013;8702 OF 2013; 8703 OF 2013; AND 8704 OF 2013)

DECIDED ON 10TH SEPTEMBER, 2014

GENERAL

In Civil Appeal No. 8700 of 2013, filed by anAssociation of Residents of a particular locality, thechallenge is to the order of Government of Tamil Nadubearing G.O. No. 122 dated 14.07.1998 containing ascheme for development of a proposed canal by nameMadhavaram Left Flank Water Surplus Course, on theground that the scheme is misconceived and technicallyflawed which shall lead to unnecessary acquisition of landand building belonging to the residents of the affectedarea, the other Civil Appeals contain specific challenge toproceedings initiated under the Land Acquisition Act, 1894(hereinafter referred to as, ‘the Act’) undertaken by theTamil Nadu State Government for the purpose ofimplementation of the said scheme covered by G.O.No.122 relating to the proposed canal improvement works.

ISSUE

Whether the appellants’ prayer noted above deservesto be allowed in view of Section 24(2) of The Right to FairCompensation and Transparency in Land Acquisition,Rehabilitation and Resettlement Act, 2013 (2013 Act) ornot. In view of the order proposed, we find it futile to referto and discuss the facts involved in different civil appeals.

FACTS

The various orders passed by this Court in thesecases reveal that the matter was taken up in a muchwider perspective in the light of larger issues raised inpublic interest that alternative scheme be also devisedand taken into account to prevent unnecessarydisplacement of large number of residents and with a

view to protect likely pollution of some lakes on accountof flood waters entering into such lakes and therebyaffecting the cleanliness of possible sources for supply ofdrinking water. This Court, long back on 10.02.2010 feltthe need for and hence directed the respondents to submita revised comprehensive plan of the area showing locationof various water bodies, the construction of canal whichhad already taken place and the natural flow of waterfrom Ambattur tank to Korattur tank and from Koratturtank to Capt. Cotton Canal. On 31.03.2010, learned seniorcounsel for the State of Tamil Nadu referred to andsubmitted a final Report by Mott MacDonald, an expertappointed by the Government of Tamil Nadu to study theentire scheme and prepare Storm Water Drainage MasterPlan for Madras City and Pre-feasibility Study for MadrasMetropolitan Area. On going through the relevant portionsof that Report, this Court decided to appoint an expertbody to study the environmental aspect of the schemeunder challenge because the expert appointed by the StateGovernment had suggested further study/monitoring ofground water outside the Chennai Metropolitan area. Byorder dated 09.04.2010, this Court appointed a Committeeof several experts under the Chairmanship of Hon’bleMr. Justice Doraiswamy Raju, a former Judge of this Court.The terms of reference included eight points and theCommittee was requested to submit its report within threemonths. The Committee’s report was made available tothis Court, belatedly and for one reason or the other, thematter could not be heard finally for a long period. At thestage of hearing, on 10.07.2014, the State of Tamil Naduexpressed its willingness to explore the possibility ofarriving at some consensus. This course was adopted inview of relevant map and materials which showed that asa part of Chennai City Waterways Alignment of SurplusCourse Package IV, considerable part of the proposedcanal had already been constructed but the balance partremained incomplete only on account of present

12 NCHF BULLETIN

proceedings against acquisition of lands for the purpose.However, the High Level Committee meeting underChairmanship of the Chief Secretary of the State involvingthe petitioners in public interest litigation as well asrepresentatives of the land owners’ Association could notprove fruitful.

HELD

The Hon’ble Supreme Court, after examining theprovisions of the Land Acquisition, Rehabilitation andResettlement Act, 2013 and the relevant judgments cameto the following conclusion:

a. From a plain reading of Section 24 of the 2013 Actit is clear that Section 24(2) of the 2013 Act doesnot exclude any period during which the landacquisition proceeding might have remained stayedon account of stay or injunction granted by any court;

b. Legislature has consciously omitted to extend theperiod of five years indicated in Section 24(2) evenif the proceedings had been delayed on account ofan order of stay or injunction granted by a court oflaw or for any reason. Such casus omissus cannotbe supplied by the court in view of law on the subjectelaborately discussed by this Court in the case ofPadma Sundara Rao (Dead) & Ors. v. State of T.N.& Ors. (2002) 3 SCC 533;

c. The plain wordings used by the Legislature are clearand do not create any ambiguity or conflict. In sucha situation, the court is not required to depart fromthe literal rule of interpretation;

d. The judgment of three Judges’ Bench in the case ofHarakchand Misirimal (supra) has been followed byanother Bench of three Judges in the case of Unionof India & Ors. etc. v. Shivraj & Ors. etc. (2014) 6SCC 564. In paragraphs 25 and 26 of that judgment,this Court took notice of a clarification issued by theGovernment of India, Ministry of Urban Development,Delhi Division dated 14.03.2014. Part of the circularextracted in that case clearly shows that the periodof five years or more in Section 24(2) of the 2013Act has been prescribed with a view to benefit theland-losers and the period spent in litigation due tochallenge to the award or the land acquisitionproceedings cannot be excluded.

e. Therefore, the conditions mentioned in Section 24(2)of the 2013 Act are satisfied for allowing the plea ofthe appellants that the land acquisition proceedingsmust be deemed to have lapsed in terms of Section24(2) of the 2013 Act.

Note : Please write to NCHF Secretariat for copy of abovejudgment, if required.

E-mail : housefedho@gmail.com Office : 0484-2402913Fax : 0484-2402937 President : 0484-2401084

M.D. : 0484-2402734Dy. G.M. : 0484-2402335

KERALA STATE COOPERATIVE HOUSINGFEDERATION LTD., NO. 4330

P.B. NO. 1896, KALOOR,ERNAKULAM, KOCHI – 682017

The Central Financing Institutionof Housing Cooperatives in the State

Providing Long Term Loans upto Rs.10 LakhsFor Further Details, Contact Primary Housing Co-op. Societies

ADV. M. EBRAHIMKUTTY VENU S. NAMBISANPresident Managing Director

FEBRUARY, 2015 13

SNIPPETS

prepare a scheme for such people to enable them tohave their own house. This requires hard efforts, dedicationto know the ground realities, he added.

The Hon’ble Minister while pointing out that housingsocieties presently functioning are having problems saidthat the Goa Housefed may help them to overcome theproblems to regularize their functioning being ApexInstitution of Housing Cooperative Societies through: (i)timely conduct of Audit, AGM and filing of Returns; (ii) toguide them to solve the problems of Accounting Procedureand filing of Income Tax Returns; (iii) to help and guidethem to execute Conveyance Deed; (iv) ensure for properManagement and Maintenance; (v) ensure for training ofMembers; (vi) periodical meetings with housing societiesand discuss and solve their problems; and (vii) involvementof likeminded people in the movement. He also assuredthe Chairman of the Goa Housefed that an AssistantRegistrar in the Cooperation Department will be allottedfor housing cooperatives.

He wished that the Conference will be of great helpto housing cooperatives perticularly to those responsiblefor managing finances of housing cooperatives.

While delivering the Presidential Address, Shri S.N.Sharma, Former Cabinet Minister in the Government ofMadhya Pradesh and Chhattisgarh and Chairman, NCHFsaid that cooperative housing in India is an importantsector for providing shelter to the lower and middle incomefamilies, social rental housing and rural housing areaswhich are almost neglected by private agencies due tolow profit margins. However, there are many impedimentsto its growth and functions, including difficulty in gettingaffordable land for construction activities, non-availabilityof low interest loans. Certain other major factors that retardthe effectiveness of cooperatives are lack of optimumknowledge or training in cooperative management for theprimary cooperative executives and large number of

NATIONAL CONFERENCE ON ACCOUNTING, INCOME-TAX & AUDIT FOR HOUSING COOPERATIVES

The National Cooperative Housing Federation ofIndia (NCHF) in collaboration with Committee forCooperatives and NPO Sectors of the Institute ofChartered Accountants of India (ICAI), NationalCooperative Union of India (NCUI) and the Goa StateCooperative Housing Finance and Federation (GoaHousefed) organised a National Conference onAccounting, Income Tax and Audit for HousingCooperatives on 7th February, 2015 at Panaji-Goa.

Shri Mahadev Narayan Naik, Hon’ble Minister forCooperation, Government of Goa inaugurated theConference. On this occasion he congratulated the GoaHousefed for hosting such an important National event inGoa, especially to discuss various problems faced byhousing cooperatives particularly in respect of Taxation,Audit and Accounts and to plan systematic strategy toovercome the same.

Shri Naik in his inaugural address said that housingis a basic necessity for human beings and to fulfill thebasic necessity the Goa Housefed has played a vital rolein Goa to some extent. There are altogether 2009cooperative housing societies existing in the State andvery few of them might have availed financial assistancefrom Goa Housefed to construct their buildings/tenements.Presently, the scenario has been changed due to majorinvolvement of builders lobby in the said business. Whilestating that there are some sections of people who arestill deprived to have their own house due to variousconstraints, he appealed to the Goa Housefed to go tothe village and see how the downtrodden people aresuffering due to non-accomplishment of basic needs and

Shri Mahadev Narayan Naik, Hon'ble Minister for Cooperation,Government of Goa delivering the inaugural addres at the Conference.

National Conference on Accounting, Income Tax & Audit for HousingCooperatives is in progress.

14 NCHF BULLETIN

Government regulations in land, legal and planning andcompliance with various provisions of Income Tax Act byhousing cooperatives.

Shri Sharma further said that in order to strengthenthe cooperative housing movement in the country, theState Governments and their local authorities shouldconsider allotting one-third of developed land to thecooperatives on priority and at reasonable cost; nationallevel funding agencies like LIC, HUDCO, and NHB shouldincrease their allocation to housing cooperatives andprovide loans at reasonable rate of Interest; the StateGovernments should make necessary amendments in theirState Acts to exempt housing cooperatives from paymentof stamp duty and registration fee. They should alsocontribute liberally to the share capital base of theirrespective State Housing Federations, which will increasethe borrowing power of the cooperatives. The remainingState Governments may also consider including aSeparate Chapter in their Cooperative Societies Acts ashas been done in the States of Delhi, Goa, Jammu &Kashmir and Madhya Pradesh. The cooperatives needsupport from all quarters, he added.

CA Rajkumar S. Adukia, Chairman, Committee forCooperatives and NPO Sectors of ICAI, in his Key-Noteaddress said that cooperative housing is one of the bestways to provide shelter to the needy. He also mentionedabout the housing shortage in the country and positivesteps taken by the Government of India for promotinghousing and real estate sector which has been thebackbone of the Indian economy and major contributor inthe economic growth.

CA Adukia further said that housing societies arerequired to comply with the provisions of the applicableActs, Rules and Bye-laws as well as various notificationsand orders issued by the Government and RegulatoryAuthorities. It is very important for cooperative housingsocieties to keep up with the compliance managementunder various laws and regulations right from the beginningto avoid last minute hassle and incurring additionalexpenses. While appreciating the good work done byNCHF in promoting cooperative housing, he said that inevery State we can percolate the idea of good practicesand assured full cooperation of ICAI.

Dr M.L. Khurana, Advisor, NCHF while briefing thedelegates about the Conference highlighted the importanceof Housing as well as salient features of housingcooperatives. He pointed out that cooperative housingsocieties have made rapid strides in the country and alsocontributed substantially to national development with 25State level Apex Cooperative Housing Federationsproviding loans worth Rs. 12,000 crores to members forconstruction of homes. There has hardly been any incident

of communal disharmony or loss of human lives or propertyin housing cooperatives, he added.

Shri B S Manhas, Vice-Chairman, NCHF, whilespeaking on the occasion highlighted the topical importanceof the Conference. He said that cooperative societies areformed for the promotion of thrift and self-help amongagriculturists, artisans, crafts persons etc. The matter oftax exemption to cooperative societies is based on theprinciple of mutuality i.e. no one can make a profit out ofhimself. He further said that there is no place for tax evasionwhether by individuals or institutions, however legallyavoiding tax is all right. He expressed the hope that theConference will be useful to the personnel of housingcooperatives in understanding various taxation aspects.

Earlier while welcoming the dignitaries and delegates,CA R.K. Pikale, Chairman, Goa Housefed said that theproblem of food and clothing is almost non-existent.However, housing problem and the problems associatedwith it such as drinking water, electricity, sanitation, andcleanliness - swachhta is a biggest challenge before theGovernment, NGO’s and all of us associated with Housingsector in one form or the other. This gigantic task cannotbe accomplished unless every one of us put our headsand hands together.

CA Pikale while recalling his association with thecooperative sector for last 40 years said that availability ofland and cost of land is a key factor in solving housingproblems. Housing problem needs immediate attention ofthe Government. His Federation has been one of theprofessionally managed institutions in the cooperative sectorwith a very low NPA and paying dividend for last 30 years,he added. While stating that a Committee headed by himhas already submitted its Report to the State Government,he appealed to Hon’ble Cooperation Minister to pursue therecommendations to convert them into law so that housingcooperatives in Goa will be well managed bodies. He also

A view of the participants at the National Conference on Accounting,Income Tax & Audit for Housing Cooperatives.

FEBRUARY, 2015 15

said that some of the provisions of the Goa CooperativeSocieties Act, 2001 have been made part of the Constitutionof India, by 97th Constitutional Amendment.

CA Navin G. Daivajna, Chairman, Goa Branch ofWIRC of ICAI also addressed the Conference andproposed a vote of thanks at the inaugural function.

During the Technical Sessions, CA Vijay P. Joshimade a detailed presentation on ‘Income Tax Compliancesfor Cooperative Housing Societies’; CA Ramesh Prabhudelivered a lecture on ‘Accounting for Housing Societies’;CA Chandrashekhar V. Chitale delivered a talk on‘Importance of Internal Control, Internal Audit and AuditCompliance in Cooperative Housing Societies’; andAdvocate Monarch Bhatt made a detailed presentation on‘Service Tax and VAT Compliances for CooperativeHousing Societies’. CA R.K. Pikale, Chairman, GoaHousefed chaired two Technical Sessions whereas oneSession was chaired by CA Ramesh Prabhu.

The delegates took active part in the opendiscussions during each of the Technical Sessions aswell as in the question answer session and raisedimportant issues pertaining to accounting, audit andtaxation aspects of cooperatives especially housingcooperatives. They shared their knowledge and experienceand also brought to the notice of Faculty various problemsfaced by them in their functioning. The Faculty replied allthe queries of the delegates to their satisfaction. TheConference was attended by over 125 delegates fromvarious parts of the country.

FAREWELL PARTY IN THE HONOUR OF DR. KHURANA

A Farewell Party was organised on 6th February,2015 at Panaji, Goa immediately after the Board meetingof NCHF in the honour of Dr. M.L.Khurana who recentlyretired from the post of Managing Director of NCHF. TheBoard placed on record the excellent service record and

enormous contribution made by Dr. Khurana in more thanfour decades of his service in NCHF.

Shri S.N. Sharma, Chairman and Shri B.S.Manhas,Vice-Chairman, NCHF; Shri T.M.Biswas, Chairman,West Bengal Housefed, the senior most member of theBoard; CA R.K. Pikale, Chairman, Goa Housefed;Shri R.V. Gaighole, Chairman, Maharashtra Housecorpn.;Shri Nilesh Solanki, Chairman, Gujarat Housecorpn;Shri Y. Gopal Reddy , Chairman, Andhra PradeshHousefed; Shri Mudit Verma, Chairman, SahakariAwas Nirman Avam Vitta Nigam, Lucknow; Shri H.K.Gopalakrishna, Managing Director, Karnataka Housefed,Shri Bharat Bhushan, Managing Director, J&KHousecorpn., Shri V.K. Bhatia, Chief Accounts Officer,Punjab Housefed placed on record the enormouscontribution made by Dr. Khurana. They said that Dr.Khurana, after an excellent service of more than fourdecades, has relinquished the office of the ManagingDirector, NCHF with effect from 30th September, 2014and today, we have assembled here for a farewell partyhosted by Goa Housefed in honour of Dr. Khurana. Hehas made enormous contribution for the growth ofcooperative housing across the country also internationallyand prosperity to NCHF. Dr. Khurana has developed NCHFfrom scratch. In 1970 with a meagre sum of Rs.5500/-and a registration file, today NCHF Secretariat is locatedat prestigious August Kranti Marg at New Delhi. It is aself sustaining non-profit organisation with sufficient Corpusand without any Government support.

The journey has been long and arduous one,complete with fluctuations. In initial years on certainoccasions, Dr. Khurana was not even paid the salary,let alone other benefits which are normally attached toa service. Not only that he provided space to NCHF athis residence for about Four years without chargingany rent, he fought against time and made imprint ofDr. M.L. Khurana being honoured at the Farewell Party.

Group Photo of the Office-bearers, Directors and Officers of NCHF,Apex Federations and Goa Housefed.

16 NCHF BULLETIN

efforts and achievements which will be remembered fortimes to come. We value his association with NCHF asManaging Director, in capacity of which he renderedexcellent, honest and sincere services for the cause ofhousing cooperatives.

More importantly, Dr. Khurana has had an excellentservice record during all the years in NCHF. Further, rightfrom its inception till date there has never been any adverseremark made by the Statutory Auditors on the Accounts oron the working of NCHF. Dr. Khurana willingly foregoneoffers of appointment from various prestigious organisationsto always deliver unbiased focus and priority to NCHF. Hehas always been an emotional connect with NCHF.

Dr. Khurana has also created decent and substantialliterature by writing large number of books and articles whichwere published in national dailies, cooperative journals andin various magazines published from abroad. All literaturewill guide the stake holders in housing cooperatives in timesto come and will remain as an invaluable asset to NCHF. Itis a matter of pride for the cooperative housing sectorespecially NCHF to be associated with Dr. Khurana whois perhaps the only D.Lit. Degree holder in the IndianCooperative Movement. They wished him a peaceful andhappy retired life.

Dr. Khurana thanked for the kind sentimentsexpressed by the Hon’ble Members of the Board. He saidthat as time flew past, it left behind a trail of rich and profuseexperience, which he garnered in more than four decadesof service in the National Cooperative Housing Federationof India (NCHF). An overwhelming journey of over 30 yearsas Managing Director reached its final destination.

Treading down the memory lane, he had a fulfillingcareer complete with shades of achievements andstruggles. He thereby considers his retirement well-earnedand deserved. He said, during his extensive service career,he has been intimately associated with the cooperativehousing movement especially NCHF and had the privilegeof being a witness in the promotion, progress, trials andtribulations, successes and failures, growth andachievements. His personal and professional growths werealways in tandem with the growth of NCHF.

He said, it is mention worthy that he could make amark during his service only because of the blessings ofthe Hon’ble Members of the Board, unconditional respect,love and support. He will relish this sincere bond for alifetime and is sure to bring a smile of satisfaction uponrecalling. Though gratitude would be a mere small wordto recognize the kindness showered on him.

He assured that he would continue to serve theCooperative Housing Movement in a more positive way indays to come.

(Contd. from page 10)through Director of Cooperative Audit/CooperativeDepartment and Chartered Accountants in few cases.However, the tax audit needs to be undertaken only by aChartered Accountant. Tax Auditor is appointed by thecooperative themselves. Tax audit report should containtwo forms viz. Form 3CA and Form 3CD.

Form 3 CA is the tax audit certificate and Form 3CD is a questionnaire having 32 questions both signed bythe Chartered Accountant. Housing cooperatives shouldcomplete the tax audit before 30th September of theassessment year and should fill the relevant columns ofreturn forms on the basis of the tax audit report. The lastdate for filing the tax audit return is on or before 30thSeptember of the assessment year.

Taxability of TDR and FSI wrt Co-op.Housing Society:Recent Judgement

CIT vs. Sambhaji Nagar Coop. Housing SocietyLtd – Bombay HC Judgement – Date of Publication 17thDecember, 2014

Citation

Sections 45/48: Gains on sale of TDR received asadditional FSI as per the D. C. Regulations has no costof acquisition and is not chargeable to capital gains

While giving its ruling on taxability ofdevelopment rights for housing societies, the BombayHC said the additional FSI or TDR is generated bychange in DC Rules and not by sale of developmentrights and hence is not taxable.

The Bombay High Court in a recent judgement CITvs. Sambhaji Nagar Coop. Housing Society Ltd. hasgiven a big relief for all those societies, which haveredeveloped their properties. The HC said, additional floorspace index (FSI) or transfer of development rights (TDR)that is generated by the change in Development ControlRegulations is not a case of sale of development rightsembedded in the land.

Controversy had existed between societies and theIT Department regarding taxability of these amounts. Inthe relevant case, Sambhaji Nagar Cooperative HousingSociety (CHS) Ltd was asked to pay tax on Rs.2.23 croreit received from the developer.

The Assessing Officer (AO) from the Income Tax(I-T) Department has said the right is attached to the landowned by the Society, which had been acquired for avalue and therefore there is transfer of capital asset

FEBRUARY, 2015 17

chargeable to Tax. The Commissioner of Income Tax(Appeals) upheld the order of AO holding that this is nota case where extra FSI had occurred due to change inlaw but TDR already existed at the time of reconstructionof society’s building.

The Tribunal followed a decision by CoordinateBench in the case of New Shailaja CHS involving similarcontroversy and held that sale of TDR does not give riseto any Capital Gains chargeable to tax.

The High Court looked in to the provisions of Section48 wherein mode of computation of Capital Gain is laiddown, Section 49 wherein cost with reference to certainmodes of acquisition is set out and Section 55(2) clarifyingcost of acquisition for the purpose of Section 48 and 49.

The HC then upheld the order of the Tribunal.

PART 4: CALLING OF DEPOSITORS’ INFORMATION

Cooperative banks and credit societies in differentStates were served with notices from Income TaxDepartment seeking details of depositors in general nature.The depositors’ information is being asked by using Section133 (6) of the Income Tax Act, 1961. In case of failure toproduce the required information within the time stipulatedby the Income Tax Department, there is a mention aboutimposition of penalty u/s 272A(2)(c) to the tune of Rs.100for every day during which the default continues.

Hon’ble Supreme Court in two line judgment hasdismissed the Special Leave Appeal (Civil) No. 3976/2010filed by Kathroor Service Cooperative Bank and someother societies in Kerala. The cooperative societies are“persons” as defined in Income Tax Act and therefore areliable to obey the notices issued by Income TaxDepartment u/s 133(6) calling for details of depositors.This judgment was challenged in appeal before the ApexCourt. In the final judgment on this SLP delivered on27.08.2013, the Bench consisting of Justice H.L. Dattuand Justice Sudhansu Jyoti Mukhopadhaya has dismissedthe case in two lines. “Dismissed. Therefore, those housingcooperatives which mobilize deposits from their membersare also obliged to provide information of their deposits ifintended by the income tax authorities.”

RECENT DEVELOPMENTS

Housing cooperatives in order to attain the viability,diversified their activities by accepting different kinds ofdeposits, undertake chitty form of deposit scheme, issuegold loans and on top of that deal with non members formajority of the fund mobilization is concerned. When thesocieties try to widen their business, the income generatedfrom those activities is taxable.

The housing cooperatives should plan their tax withthe legal spirit without intending to defraud in paying theincome tax. To avail the opportunities of tax minimizationor tax concession, the societies must be thorough in thedeductions available for them under Section 80P.

Under Section 80A(5) of the Act, housingcooperatives should claim the benefit available to themunder Section 80P by filing of income tax returns intime. In case of non filing or late filing the entiredeductions u/s 80P is disallowed and therefore, propercaution should be made by these societies to timely filetheir returns.

As the expenditure is on the increase due toallocation of funds for various welfare measures, theGovernment is widening the tax on one side and makingstringent measure to recover tax from tax evaders. Theincrease in risk involved in tax evasion in the recent yearsdue to measures taken by the Government, resulted intremendous buoyancy in the direct tax and the Governmentcollected gross direct tax during April-September of theFinancial Year 2014-15 to the tune of Rs.3,46,144 croreas against Rs.3,01,063 crore in the same period last yearwitnessing a growth of 15%. The Government has fixeddirect tax collection target of over Rs.7,36,221 crore for2014-15.

CONCLUSION

Tax benefits were extended to cooperative institutionsmainly due to their contribution in providing credit andother facilities to all especially in the backward areas andareas where no formal financial institutions wereestablished. The housing cooperatives which faces toughcompetition from commercial banks, financial institutionslike HDFC, Non-banking institutions like LIC, multinationalbanks like CITI Bank, and the time when many of thesocieties struggle for existence, burden of income taxseverely affect the very existence of these societies. Inthe changing economic environment the housingcooperatives in order to attain their goals and objectiveswill have to promote managerial excellence in its entireactivities including prompt and correct payment of incometax. Widening of membership base, introduction ofinnovative and attractive loan schemes with flexibility inrepayment, educating and training members andemployees and last but not least enhancing the managerialexcellence in the functioning of the society, will definitelypave way for housing cooperatives in surviving andsucceeding in the present day economy. Therefore,housing cooperatives should be more vigilant, active andkeep their books up to date, pay the advance tax, and filethe returns in due dates, to avoid complications from theIncome Tax Department.

18 NCHF BULLETIN

21oha 'krkCnh dh ekax lgdkfjrkvksa esa ;qodksa dh vf/dre Hkkxhnkjh

&MkW- Mh-ih- xxZ*

lgdkjh lfefr O;fDr;ksa dh ,d ,slh Lok;Ùk laLFkk gS] tksla;qDr LokfeRo okys ,d yksdra=kh; vkèkkj ij fu;af=kr m|e dsekè;e ls viuh lkekU; vkfFkZd] lkekftd vkSj lkaLÑfrdvko';drkvksa dks iwjk djus ds fy;s] LosPNk ls xfBr dh tkrhgSA ;g lfefr ,d O;kolkf;d miØe ,oa lkekftd laxBu gSAlgdkjh lfefr;ka Lokoyacu] Lo;a mÙkjnkf;Ro] yksdra=k] lekurklkE;rk ,oa ,dtqVrk tSls ewY;ksa ij vkèkkfjr gksrh gSaA viuhlaLFkkvksa dh ijaijk ds vuqlkj lgdkjh lfefr;ksa ds lnL;]bZekunkjh] ikjnf'kZrk] lkekftd mÙkjnkf;Ro ,oa nwljs yksxksa ds fgrfparu tSls uSfrd ewY;ksa ij fo'okl djrs gSaA

lgdkjh lfefr;ka lgdkfjrk ds orZeku lkr fl¼karksa ;FkkLoSfPNd ,oa [kqyh lnL;rk] iztkrkaf=kd lnL; fu;a=k.k] lnL;dh vkfFkZd Hkkxhnkjh] Lok;Ùkk ,oa Lora=krk] f'k{kk] izf'k{k.k ,oalwpuk] lgdkfjrkvksa esa ijLij lg;ksx] leqnk; ds izfr fu"Bk dksviuh dk;Z fofèk;ksa esa izfryf{kr dj] fo'kq¼ lgdkfjrk dkifjp; nsrh gSaA ;s O;kikfjd laLFkku gSaA

O;kolkf;d xfrfofèk;kalgdkjh laLFkk,a vU; O;kikfjd laLFkkuksa ds vuq:i gh

fofHkUu O;kolkf;d xfrfofèk;ka lapkfyr djrh gSaA

mijksDr O;kolkf;d xfrfofèk;ka ,d nwljs ls lacafèkr gksrhgSa] mUgsa lexz :i ls le>uk rFkk lHkh dks lkFk ysdj pyukgksrk gSA fcØh O;kikj dk izkjaHk ,oa var gSA xzkgd larq"V jgs] [kq'kjgs] ;g lcdk mís'; ,oa ladYi gksuk pkfg,] D;ksafd tks laLFkkfcØh esa ftruk vfèkd 'ks;j cktkj esa izkIr dj ldsxh] og mruhgh izxfr'khy gksxhA

gesa ;g lnSo è;ku j[kuk gS fd O;olk; djus ds fy;s N%lalkèku ;Fkk ekuo] foÙk] HkkSfrd inkFkZ] ;a=k] v|ru rduhd ,oaizHkko'khy] vUos"k.kkRed izcaèk ,oa iz'kklu vko';d gh ugha]cfYd vfuok;Z gSA lHkh lalkèku vko';drkuq:i Js"Bre xq.koÙkkokys] dq'ky ,oa v|ru gksus pkfg;s vU;Fkk laLFkk dh izxfr dksxzg.k yx ldrk gSA

bl lgdkjh O;kolkf;d miØe ,oa lkekftd laxBu dk

izcaèku@iz'kklu fofèkor i¼fr ls fd;k tkuk ijeko';d gS]ftlls ;s iztkrkaf=kd laLFkku Js"Bre lsok,a vius lnL;@xzkgdksadks ns ldsa ,oa lHkh lacafèkr i{kksa ds izfr viuk mÙkjnkf;RoJs"Bre :i ls fuHkk ldsa blls mldh lqanj Nfo cusxhA vr,ovko';d gS fd izcaèk rFkk mlds rRoksa dk iwjk Kku gksA

izcaèk ,oa mlds rRoizcaèk ,d rduhd lkekftd fØ;k gS] ftlds varxZr laLFkk

ds leLr O;kolkf;d dk;ks± dks izHkkodkjh vFkok dq'ky jhfr lsvk;ksftr ,oa fu;af=kr djus dk nkf;Ro ogu fd;k tkrk gSA ;g,d ,slh dyk gS] ftlds }kjk O;ofLFkr jhfr ls laxfBr O;fDr;ksads lewg ls dk;Z lEiknu djk;k tkrk gSA laLFkk ds izcaèk ,oaiz'kklu ls lacafèkr lHkh i{kksa dks vius drZO;] vfèkdkj ,oatokcnkfj;ka HkyhHkkafr fuHkkus gksrs gSaA

izR;sd laLFkk dks izR;sd O;kolkf;d xfrfofèk ds fy;s bulHkh rRoksa ds fl¼karksa dks O;ogkfjd :i ls fØ;kfUor djvisf{kr ifj.kke izkIr fd;s tk ldrs gSaA

lgdkjh laLFkkvksa ds izcaèk esa] izcaèk lk[k ds fl¼karksa ,oaewY;ksa dks Hkh izR;sd xfrfofèk esa mi;qDr LFkku nsuk vko';d gSvr,o lgdkjh laLFkk dk izcaèk vU; izkbosV ,oa 'kkldh;laLFkkvksa ls fof'k"V gSA

Hkkjrh; lgdkfjrk&,d >ydHkkjr o"kZ dh lgdkfjrk fo'o esa lcls fo'kky gSA la[;kRed

n`f"V ls fofHkUu izdkj dh fofHkUu Lrjksa ij 6-10 yk[k lfefr;kadk;Zjr gSa] ysfdu dqN detksj gSA buds dqy 24-93 djksM+ lnL;gSa] tks rhu :iksa&ekfyd] izcaèk ,oa xzkgd dh Hkwfedk ,d lkFkfuHkk jgs gSaA ns'k ds leLr jkT;ksa esa lgdkjh èot 'kgj ls ysdjizR;sd xkao esa vius lIrjaxksa dh euksgkjh] bUnzèkuq"k tSls :i dhNVk fc[ksj jgk gSA leLr lgdkjh laLFkkvksa dh dk;Z'khy iwathyxHkx 72]95]765-7 fefy;u #i;s rFkk fu{ksi 47]40]588-6fefy;u #i;s gSaA lgdkfjrk dk èot 98 izfr'kr xkaoksa esa iQgjkjgk gSA Hkkjr o"kZ esa lgdkjh laLFkkvksa dh lajpuk iQSMjy Lo:idh gSA vr,o izkFkfed Lrj dh laLFkk,a 357 ftyk Lrjh;lgdkjh la?kksa rFkk 390 jkT; lgdkjh la?kksa ,oa jk"Vªh; Lrj ij 21* iwoZ lfpo] jk"Vªh; lgdkjh izf'k{k.k ifj"kn] ubZ fnYyh

FEBRUARY, 2015 19

jk"Vªh; lgdkjh iQSMjs'ku LFkkfir dj nh xbZ gSa lgdkfjrk dk ns'kds vkfFkZd ,oa lkekftd fodkl esa egRoiw.kZ ;ksxnku gS] dqNeq[; vkadM+s bl rF; dh iqf"V djrs gSaA Ñf"kxr lk[k esalgdkfjrk dk ;ksxnku 16-9 izfr'kr] Ñf"k vYidkyhu lk[kforj.k esa 20 izfr'kr] moZjd forj.k 36 izfr'kr] moZjd mRiknu26-3 izfr'kr] phuh feyksa dh LFkkiuk 48-2 izfr'kr] phuh feyksadk mRiknu 39-79 çfr'kr] nqXèk miktZu 7-85 izfr'kr] rsyfoi.ku 48 izfr'kr gS rFkk izfro"kZ c<+ jgk gSA lgdkfjrk dh jk"Vªuhfr esa lgdkjh ewY;ksa rFkk fl¼karksa dks lfEefyr dj lgdkfjrkdks l'kDr cukus dk iw.kZ iz;kl fd;k tk jgk gSA xzkeh.k lgdkjhÑf"k lk[k ds iquokZl ds fy;s izks- ,- oS|ukFku desVh dk xBufd;k x;k] bldh vuq'kalkvksa dks dkiQh jkT;ksa us ykxw fd;kAblds varxZr dsUnz ljdkj us 13]597 djksM+ #i;s dh lgk;rkiznku dhA o"kZ 1991 dh mnkjoknh uhfr;ksa ds ifj.kkeLo:ilgdkfjrk ds fodkl esa vusd ckèkk,a mifLFkr gqbZ gSaA Hkkjrh;lafoèkku esa la'kksèku dj ^^lgdkfjrk laLFkkvksa dks LFkkfir djusdks ekSfyd vfèkdkj** ekuk x;k gSA

lgdkjh laLFkkvksa ds fodkl esa vusd leL;kvksa dks vuqHkofd;k tk jgk gSA lnL;ksa dh lfØ; lk>snkjh cgqr de gSA;s Lokeh] izcaèku ,oa xzkgd dh iw.kZ tokcnkjh ugha fuHkk jgsgSaA lnL;rk esa ;qokvksa dh Hkkxhnkjh de gSA laLFkk,a vkfFkZd :ils lqn`<+ ,oa Lokoyach ugha gSa vfèkdka'k esa O;kolkf;d izcaèkdh rduhdsa ijaijkxr gSaA iztkrkaf=kd izcaèk lPps :i esafØ;kfUor ugha fd;k x;k gSA laLFkkvksa ds izcaèk ,oa iz'kklu esadrZO;ksa] vfèkdkjksa rFkk mÙkjnkf;Ro dk mi;qDr foHkktu ugha gqvkgSA laLFkkvksa dk O;kikfjd fodkl] uohu okrkoj.k ds vuqdwyugha gqvk gSA ekuo lalkèku dh dk;Z dq'kyrk ,oa mRikndrkcgqr de gSA uohu rduhdksa dk mi;ksx ukeek=k ds fy;s fd;ktkrk gSA izcaèk dh uohu rduhdksa rFkk lwpuk izcaèk i¼fr dkmi;ksx ux.; gSA O;kolkf;d tksf[ke ysus dh {kerk laLFkk izcaèkesa de gSaA xzkeh.k rFkk 'kgjh ;qok] ;qofr;ksa ds fy;s fofHkUu izdkjdh laLFkkvksa dk fuekZ.k ugha ds cjkcj fd;k x;k gSA ns'k dhc<+rh vkcknh rFkk mldh uohu ih<+h dh vko';drkvksa dsvuq:i lgdkjh laLFkk,a rFkk mudk usr`Ro O;ogkfjd :i esa udjus ls lgdkfjrk O;fDrxr rFkk 'kkldh; {k s=kk s a lsizfrLièkkZ djus esa fiNM+ jgh gSA orZeku izfrLièkkZ ds ;qx esa mudsvfLrRo dks [krjk mRiUu gks x;k gSA vr,o vko';drk gSmRlkgh esgurd'k] 'kfDroku] [kqysfny okys] izf'kf{kr] 'kh?kzfu.kZ; ysus okys ;qok] ;qofr;ksa dh tks lgdkjh laLFkkvksa dks fo'kq¼lgdkfjrk rFkk O;olk; izcaèk ds rRoksa ds vuq:i lapkfyr djldsaA

;qok dkSu\;qok og dgykrk gS ftudh vk;q 15 o"kZ ls 38 o"kZ dh gS]

ysfdu ,d tSu lekt ds egkeqfu ds vuqlkj ,d cw<+k Hkh ;qokgS] ;fn mlesa mRlkg] mUekn] ifjJe] tksf[ke ysus dh {kerk]ifjorZu'khyrk rFkk v|ru n`f"V ls fo"k;ksa dks le>us dh ykylkgSA ijaijkxr fopkjksa dks rdZ ds vkèkkj ij leh{kk djus dh {kerkgSA ;qokvksa esa buds vfrfjDr vkSj Hkh y{k.k n`f"Vxkspj gksrs gSa rFkkLokoyacu] LokfHkeku] eukscy] vkRecy] [kqykiu] iwokZxzg ls nwj]izf'kf{kr bR;kfnA ;qokvksa esa 'kgj] xzke ds lHkh oxks± ds ;qok];qofr;ka lfEefyr gSaA Hkkjro"kZ dh 1210-19 fefy;u tula[;k(o"kZ 2011) esa ls 68-84 izfr'kr tula[;k xzkeksa esa fuokl djrhgSA dqy tula[;k esa ls 48-46 izfr'kr tula[;k efgykvksa dh gSAns'k dh dqy tula[;k esa 50 izfr'kr tula[;k ;qokvksa dh gSA o"kZ2020 rd blesa vPNk btkiQk gksxk rFkk Hkkjro"kZ esa phu rFkkikfdLrku ls dgha vfèkd ;qok tula[;k gksus dk iwjk vuqeku gSA;qok 'kfDr euq"; thou dh lcls vfèkd ÅtkZoku ,oa xfr'khymez gS rFkk bl mez esa os lcls vfèkd LoIu ns[krs gSa rFkk mUgsalkdkj :i djus dk iz;kl djrs gSaA ;qokoLFkk u dsoy O;fDr dsthou esa ijarq lekt rFkk ns'k ds thou esa Hkh uohu n`f"V ,oa u;smRlkg dk lapkj djrh gS] ubZ fn'kk ,oa u;s y{;ksa dks fuèkkZfjrdjrh gSA ;qok] lekt ds lexz fodkl dh vk'kkvksa dh fdj.k gSAegkRek xkaèkh th us ;ax bafM;k esa dbZ o"kZ iwoZ fy[kk Fkk ^^gekjhvk'kk,a Hkfo"; ds ;qokvksa ij gSaA** v[rj valkjh us fy[kk Fkk^^;kSou Fkh ftUnxh njvly ;qok eSa thou dks lkjh mez ft;k**muds vuqlkj ;kSou thou dk calr gSA vaxzsth dfo bZelZu usdgk fd fdlh Hkh jk"Vª dh egkurk mldh tehu èkulEifÙk]Hkouksa] unh] lksuk&pkanh ij vkèkkfjr ugha ysfdu ;kSou ij vkèkkfjrgSA

vr,o ;kSou èku ns'k dk egku èku gS] cqf¼ gS rFkk lPphlEifÙk gSA vr% lekt ds vkfFkZd ,oa lkekftd fodkl dsjkeck.k lgdkfjrk vkanksyu esa lHkh Lrj ij 'kgjh] xzkeh.k ;qok,oa ;qofr;ksa dks lnL;] izcaèk rFkk vfèkdkjh ,oa deZpkjh ds :iesa lfØ; :i ls tksM+uk vfuok;Z cu tkrk gSA

lgdkjh {ks=k esa ;qokvksa dh Hkkxhnkjh D;ksa\lgdkjh laLFkkvksa esa 'kgjh] xzkeh.k ;qod ,oa ;qofr;ksa dh

vfèkdkfèkd Hkkxhnkjh fuEu dkj.kksa ls vko';d gSA

lgdkfjrk esa ;qodksa dh Hkkxhnkjh ls fodkl dh f=kos.khlHkh txg izokfgr gksxh] ysfdu lgdkfjrk ds tes tek;s usrkvksadks ;qok ih<+h ds lkFk lg;ksx djuk gksxkA mudk ekxZn'kZu rFkk;qodksa dk mRlkg lIrjax dks [kwc pedk,xkA ofj"B lnL; ubZ

20 NCHF BULLETIN

ih<+h dks vius lkFk tksM+sa] mUgsa lnL; cuus dh ik=krk iznku djusesa fny ls lg;ksx djsa] ;qokvksa ds v|ru Kku dk mi;ksx djsaAofj"B vgadkj dks fodkl dk jksM+k u cuus nsaA ;qokvksa dksvkèkqfud ,oa O;ogkfjd jhfr ls laLFkk ds lapkyu esa vfèkdkfèkdHkkx ysus ds fy;s izksRlkfgr djsaA

;qok lgHkkfxrk c<+kus ds lq>ko& iapk;rsa xzkeh.k fodkl dh fofoèk ;kstukvksa ds fØ;kUo;u

gsrq ;qok@;qofr;ksa dh cgqmís'kh; lgdkjh lfefr;ka xkaoksa esaxfBr djk,a rFkk iw.kZ lg;ksx nsaA

& lfefr;ksa dh lnL;rk c<+kuh pkfg;s rFkk mlesa fofHkUu {ks=kds ;qodksa ,oa ;qofr;ksa dks lnL; cuk,a blls tkx:drkc<+sxhA laLFkk dks u;k usr`Ro izkIr gksxk] tks laLFkk dk izcaèkvR;ar dq'kyrkiwoZd dj ldsaxsA

& laLFkk ds O;kikj esa o`f¼ gksxh rFkk ubZ&ubZ O;kikfjdxfrfofèk;ka tqM+saxhA ;qokvksa & de ls de 30 izfr'krvuqHkoh ;qok ,oa ;qofr;ksa dks izR;sd izkFkfed laLFkkvksa esalnL; cuk;k tk;sA blls laLFkk esa xfr'khyrk ,oa uohurkdk lapkj gksxkA

& izR;sd f'k{k.k laLFkk feMy Ldwy ls ysdj fo'ofo|ky;ksard esa fo|kFkhZ miHkksDrk Hk.Mkj] dSUVhu] cqd'kki] cprcSad bR;kfn dk xBu lgdkfjrk ds vkèkkj ij fd;k tk;sAblds fy;s jk"Vªh; lgdkjh fodkl fuxe dh ;kstuk dkykHk yas ;qokA bu laLFkkvksa ls lgdkjh O;kikj dk fodklgksxk] lgdkjh Hkkouk c<+sxh] laLFkk dk izcaèk O;ogkfjdn`f"V ls gksdj nwljksa ds fy;s vkn'kZ cusxkA

& lgdkjh i;ZVu] f'k{kk gLirky] Dyhfud] ;krk;kr] LoPNns[kHkky] cqtqxks± dh ns[kHkky djus okyh laLFkk,a cusaA buesa'kgjh ,oa xzkeh.k ;qok ih<+h vfèkdkfèkd lnL;rk xzg.kdjsaA

& 'kgjh {ks=kksa rFkk xzkeh.k {ks=kksa esa efgykvksa dh vfèkdkfèkdlaLFkk,a] ftuesa mUgsa jkstxkj feys rFkk mudh vk; c<+ lds]xfBr djus ds fy;s lgdkjh 'kh"kZ laLFkk,a dk;ZØe cuk djdk;Zokgh izkjaHk djsaA

& xzkeh.k ;qodksa gsrq Ñf"k lsok rFkk ekxZn'kZu dsUnz] xzkeh.kfodkl lgdkjh lfefr;ka] xzkeh.k Jfed lgdkjh laLFkk]flapkbZ lgdkjh lfefr] Ñf"k izlaLdj.k lgdkjh lfefr]xzkeh.k i;ZVu lgdkjh laLFkku] xzkeh.k gLrf'kYi lgdkjhlaLFkku] xzkeh.k lgdkjh eky] xzkeh.k LokLF; lgdkjhlaLFkk] xzkeh.k euksjatu fodkl Lrj@rglhy Lrj ij xfBrdh tk;saA

& xzkeh.k ;qofr;ksa ,oa efgykvksa ds fy;s lgdkjh lfefr;kanqXèk] i'kqikyu] eèkqeD[kh ikyu] vxjcÙkh fuekZ.k] LokLF;lsok] lkx&lCth foi.ku] efgyk ,oa cky fodkl] efgykJfed lgdkjh laLFkkA

& lHkh lgdkjh lfefr;ksa esa la;qDr lnL;rk izkjaHk dh tk;sAblesa efgykvksa dh Hkh lnL;rk 25 izfr'kr gks rFkk izcaèke.My esa 25 izfr'kr lapkyu gksA efgykvksa ds fy;smikè;{k in lqjf{kr gksA

& lgdkjh ftyk ,oa jkT; 'kh"kZ lgdkjh la?kksa esa efgykvksa dsfy;s lapkyu in lqjf{kr fd;s tk;saA izkFkfed Lrj lsefgykvksa dks ftyk Lrj rFkk jkT; Lrj ij ykus ds fy;sizksRlkfgr djsaA

& egkfo|ky;ksa esa lgdkfjrk fo"k; i<+k;k tk;s rFkk lgdkjh'kksèk dks izksRlkfgr fd;s tkus esa lgdkjh laLFkk,a lg;ksx nsaA

& fons'kksa esa ;qok lgdkjh laLFkkvksa dh iw.kZ tkudkjh miyCèkdjkbZ tk;sA ogka ds 'kh"kZ la?kksa ds f'k{k.k dk;ZØeksa esavarjkZ"Vªh; lgdkjh la?k ds ekè;e ls Hkstk tk;sA blls ;qoklgdkjh laLFkkvksa dk O;ogkfjd Kku izkIr dj ldsaxs rFkkmudh Hkkjro"kZ esa ;qok lgdkfjrkvksa dh LFkkiuk esa :fpc<+sxhA

& ;qok Dycksa] Nk=k ;qfu;uksa] efgyk la?kksa] Je la?kksa] euksjatuDycksa rFkk ;qok ,oa ;qofr;ksa lacafèkr lHkh laLFkkvksa esalgdkfjrk dk f'k{k.k dk;ZØe 'kh"kZ la?kksa }kjk vk;ksftrfd;k tk;s] ftlls ;qok lgdkfjrk dh fn'kk esa ;qodksa dkKku c<+s rFkk ;s viuh&viuh vko';drkuq:i laLFkk,axfBr djsaA

21oha 'krkCnh esa Hkkjrh; lgdkjh laLFkkvksa dk izR;sd Lrjij lksV (SWOT) fo'ys"k.k fd;k tkuk pkfg,A Lokoyach] iw.kZiztkrkaf=kd ,oa dq'ky izcafèkr laLFkk,a lgdkfjrk fl¼karksa dsvuq:i pykus ds fy;s ;qok ,oa ;qofr;ksa dks lgdkfjrk esavfèkdkfèkd Hkkxhnkjh djus ds fy;s tokcnkjh lkSaih tk;sA v|ru]rduhdksa rFkk dq'ky ,oa n{k izcaèk vkt ds ;qok lgdkjhlaLFkkvksa dks iznku djus esa iw.kZ l{ke gSA mudk Kku] mRlkg]foosd] yxu] J¼k] ladYi ,oa :fp lgdkjh laLFkkvksa dksliQy cuk;sxhA ^lgdkfjrk fcu ugha m¼kj* dh dYiuk lkdkjgksxhA lgdkfjrk liQy gksxh rks Hkkjr o"kZ dh le`f¼ ,oa lexzfodkl dks dksbZ jksd ughs ldsxkA ukjk gksxk ^^t; ;qok 'kfDr]t; lgdkj**A

(lkHkkj % yscj dkWIl] tqykbZ&flrEcj] 2014)

Rate of Interest

CH. SUKHBIR SINGH PANWAR

CHAIRMAN

RINKU DHUGGA, IAS

MANAGING DIRECTOR