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taxation of apartment owners association

Started by ketanvyas1975, March 31, 2018, 11:38:34 AM

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I have certain queries for the learned members on this forum to ponder upon. I have already been given divergent views on this and hence I thought it would be gainful to post these queries on this forum.

(1) Is residential apartment owners association an AOP or a housing society? The tax slab in both the cases will be different. I understand that an AOP can be formed only with an intent of commercial activities whereas apartment owners association is not run with any commercial intent.

(2) Will it make any difference if such apartment owner association is registered or not registered?

(3) It is undisputed that the income earned from members will be exempt on the ground of mutuality principle and income earned from non-member will be taxable as held by Supreme Court in case of Bangalore Race Club. If such apartment owners association has FD interest income of Rs. 2,00,000/- from nationalized banks, will be taxable or basic exemption limit of Rs. 2,50,000/- available to AOP will be available?

(4) is there any direct judgments of court and tribunals available on this? if yes, please provide me relevant citation.

Thank you in advance to all learned members.