Housing cooperative society

[NEERAJ BHUTORIA]

Whether registration of Housing Co operative Society is compulsory and whether registration no is required at the time of application of PAN Card.

[Rama Krishana]

The principle of mutuality is application on CGHS and therefore income arising out of mutual activities like subscription fee etc is not liable to Income Tax. However, certain other income of the CGHS would still be taxable which are not arising due to mutual activity. To discharge the tax liability CGHS is required to obtain PAN number. 

Further, if you are asking registration with the registrar of co-operative group housing society or registrar of society, the same is optional and if you wish to get the statutory support and avail the benefits under Income Tax Act, it is advisable to get yourself registered accordingly.

AI Summary

Principle of mutuality protects cooperative subscription income while non mutual receipts remain taxable; PAN required for tax compliance. The principle of mutuality exempts membership subscription fees of a cooperative housing society from income tax, whereas receipts not arising from mutual activity are taxable. The society must obtain a Permanent Account Number to discharge tax liabilities. Registration with the registrar of cooperative societies is optional but advisable to obtain statutory recognition and benefits under the Income Tax framework.