Statutory records

As per the Bye-laws of co-operative housing societies, following registers have to be maintained: (Bye-law 143)

·        The Register of Members in “I” form

·        The List of Members in “J” form

·        Sinking Fund Register

·        Audit Rectification Register in ‘O’ form, prescribed under the MCS rules 1961

·        Investment Register

·        Nomination Register

·        The Society / Members Loan Register / Mortgage Register

·        The Property register and furniture, fixtures and office equipment

The Society shall maintain separate files for the specified items (bye-law 144)

Unless otherwise decided by the Committee, it shall be the responsibility of the Secretary of the society to maintain and keep up to date the account books, registers and other records mentioned under the bye-laws Nos. 142 and 143.


Accounts and audit

Accounts: As per Rule 61 and 62 of MCSR, the annual statements of accounts are to be made in form N should be prepared by the committee and be given to the auditor appointed by the registrar within 15 days from their preparation. The balance sheet and profit and loss account are required to be laid before the annual general meeting of the society by the committee.

A copy of the balance sheet and the profit and loss account to be laid before the AGM is to be fixed on the notice board of the society atleast 14 days before the AGM.

Audit: under section 81 societies are required to arrange to get their accounts audited, at least once in each co-operative year, by an auditor from the panel of auditors maintained by the Registrar, or by a chartered accountant holding a certificate in co-operative audit issued by the Institute of Chartered Accountants of India.

The Society shall appoint the Statutory Auditor in its General Body Meeting from the panel of Auditors approved by State Govt., and same Statutory Auditor shall not be appointed for more than two consecutive years.(Model Bye-laws)


Structural audit

According to structural audit policy and provisions under section 353 (B) of the Brihanmumbai Municipal Corporation Act 1888, it is obligatory for the owner and occupants of buildings more than 30 years  old to have them inspected by a qualified structural engineer registered with the BMC, get repairs done as suggested by the engineer and submit the completion certificate along with the structural fitness certificate to the municipal corporation.


Taxation of societies

There are no separate provisions for assessment of a society under the Income Tax and the provisions applicable to Associations of persons and trusts apply to a society.

Co-operative Housing Societies are also mandatorily required to apply for PAN as per section 139(A) under Income Tax Act, 1961

Co-operative societies  are formed by a certain group of people having same interest and same objective. To achieve the said objective, funds are garnered in a single pool and used (including surplus) only for the benefit of its exclusive members (and not non-members), hence co-operative societies are within the ambit of “Principle of Mutuality” and hence its income from such is fully exempt from tax. Other income however is chargeable to income tax.

Co-operative Housing Societies earning business income qualify for a general deduction under section 80P(2)(c) of Rs. 50000. This deduction can be claimed against business income and not against interest or any other income.

Since most of the incomes of societies can fall in tax net, it is mandatory to file income tax return within the due date so provided u/s 139(1) of Income Tax Act, 1961. Since accounts of all co-operative societies are subject to statutory audit provisions under respective governing laws, therefore due date for filing return of income under the Income-tax Act, 1961 is September 30.


Co-operative Housing Societies are also mandatorily required to apply for TAN under Income Tax Act, 1961 in prescribed Form and TDS returns are required to be filed by them within the due dates prescribed.