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.

[DR.MARIAPPAN GOVINDARAJAN]

Whether you have filed ITR - 05 or still there is problem. If there is problem inform me to personal email id [email protected].

AI Summary

Mutuality principle prevents setoff of maintenance losses against interest income, taxpayer seeks exclusion in electronic return filing. Under the mutuality principle, maintenance receipts and related excess expenditure of a mutually aided cooperative society are treated as non taxable among members, and such maintenance losses should not be set off against the society's interest income; the filer reports that ITR 5 electronic filing is automatically netting the maintenance excess expenditure against interest income and seeks a way to exclude that setoff.