Feb 19, 2025, Posted by Admin

Housing Society Accounting & Legal Compliances: Everything You Need to Know

Housing societies in India need to meet various legal, financial, and administrative requirements to operate smoothly and avoid penalties. Key compliances include:

1. Registration & Legal Compliances

• • Society Registration: Register under the respective state's Cooperative Societies Act.
• • Bye-laws Adoption: Follow model bye-laws or draft and get approval from the registrar.

2. Financial & Tax Compliances

• Audit & Accounts:

• • Maintain proper books of accounts.
• • Conduct an annual audit by a government-approved auditor.
• • Submit an audit report to the Registrar.

• Income Tax Returns:

• • File IT returns (Form ITR-5) if the society earns any taxable income (e.g., interest from deposits, rental income).
• • Societies can claim tax exemption under Section 80P for specific income.

• GST Compliance (if applicable):

• • Societies collecting maintenance charges above ₹20 lakhs per annum and monthly maintenance is above ₹7500/- must register for GST.
• • File monthly/quarterly GST returns (GSTR-3B, GSTR-1) and annual GST return (GSTR-9).

3. Statutory Meetings & Records

• Annual General Meeting (AGM):

• • Must be held within 6 months after the end of the financial year.
• • The agenda should include financial statements, budget approval, appointment of an auditor, etc.

• Managing Committee Meetings:

• • Regular meetings to manage society affairs.
• • Minutes must be recorded and signed.

• Submission of Annual Reports:

• • File annual reports with the Registrar of Cooperative Societies.

4. Maintenance & Regulatory Compliance

• • Property Tax Payment: Timely payment to the local municipal body.
• • Water & Electricity Bills: Ensure all common area utility bills are paid on time.
• • Fire Safety Compliance: Housing societies with high-rise buildings must follow fire safety norms and conduct periodic inspections.
• • Lift Maintenance & Certification: Obtain annual lift inspection certificates as per local laws.
• • Waste Management Compliance: Segregation and proper disposal of waste as per municipal guidelines.

5. RERA Compliance (if applicable)

• • If the society is involved in redevelopment or construction projects, it must comply with Real Estate Regulatory Authority (RERA) norms.

6. Legal Dispute Handling

• • Maintain a grievance redressal mechanism.
• • Disputes should be resolved internally or escalated to the Cooperative Court or Consumer Forum if needed.

7. Adherence to Bye-Laws

Every housing society must function as per its registered by laws, covering aspects like membership rules, maintenance charges, dispute resolution, and governance structures.

8. Insurance Compliance

To safeguard the society’s assets, it is recommended to have insurance policies covering:

• • Fire and natural disasters
• • Theft and burglary
• • Third-party liability

9. General things to keep in mind

• • Elections for the managing committee
• • Regular fire safety audits, maintenance of firefighting equipment, and conducting safety drills

Conclusion

Housing society compliances are crucial for ensuring smooth administration and avoiding legal troubles. Regular audits, timely payments, and adherence to government regulations will help societies function efficiently and transparently.

At Jain Anurag & Associates, a professional Chartered Accountants CA firm based in Mumbai, we provide a wide range of consultancy services for all Housing society compliances related matters. You can connect with us to avail of expert advisory services tailored to your specific needs, ensuring seamless compliance and strategic guidance in navigating the complexities of Housing society compliances.

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