Short Answer

Societies are not required to offer income tax exemption benefits through TDS on maintenance.

Detailed Explanation

Rule 106 of the Gujarat Cooperative Societies Rules, 1965 states that a society can collect maintenance charges from its members for various services provided by the society. However, there is no provision in the Gujarat Cooperative Societies Act, 1961 or Rules for offering income tax exemption benefits through TDS on maintenance charges. Maintenance charges are typically collected for the upkeep and management of the society's common areas and facilities. These charges are not considered as income for the society but are used for the maintenance and administration of the society.

In practice, societies usually collect maintenance charges from their members on a regular basis to cover expenses such as security, cleaning, repairs, and other common amenities. These charges are essential for the smooth functioning and maintenance of the society. However, members are not entitled to claim income tax exemption on these maintenance charges as they are not considered as income but rather as contributions towards the upkeep of the society.

Real-world Scenarios

• Scenario 1: A cooperative housing society collects monthly maintenance charges from its members to cover expenses like water supply, electricity, and security services. These charges are not subject to TDS for income tax exemption.

• Scenario 2: A commercial cooperative society charges maintenance fees from its members for services like parking facilities, common area cleaning, and maintenance. These charges are not eligible for income tax exemption through TDS.

Reference

• Rule 106 of the Gujarat Cooperative Societies Rules, 1965

• Gujarat Cooperative Societies Act, 1961