Loss Setoff Query-Urgent

[KRISHNAPRASHANTH BOORUGU]

Dear All,

There's a mutually aided cooperative society which collects Maintenance dues for it's maintainence.This year it had excessively spent than what it had collected.Apart from this Maintenance it also has income from Fixed Deposits. As there is mutuality concept(Income from Maintenance) there will be neither any tax(In case of any excess) nor the loss would be allowed to be set off against the interest income.When i am trying to file the ITR-5 this year's Maintenance loss (Excess Expenditure Spent) is being set off against the interest income.How do i stop that from being set off and pay tax solely on entire interest income.I have tried doing in the e filing form but it is automatically being set off against the interest income.Last year when there was surplus (Excess of Maintenance over expenditure) we had put a provision for expenses and made the Maintenance income to zero and paid the tax solely on interest income.

Thank you in advance.

AI Summary

Cooperative Society Faces Tax Filing Challenge: Preventing Automatic Setoff of Maintenance Losses Against Interest Income in ITR-5 Form A cooperative society is experiencing issues with its tax filing, specifically with the automatic setoff of maintenance losses against interest income in the ITR-5 form. The society, which collects maintenance dues and earns income from fixed deposits, spent more than it collected this year. Due to the mutuality concept, the maintenance income is not taxable, and losses cannot be set off against interest income. The initiator seeks advice on preventing this automatic setoff to ensure tax is paid solely on interest income. A respondent offered assistance if the issue persists.