12 October 2009

TAXFACTS : By Ghia Tarun Jamnadas 10 10 2009

"Tax Facts" in Times Property Newspaper dated 10 10 2009  



Query : When can a member of a co-operative society be appointed as the statutory auditor thereof?

Reply : A member of the society can be appointed as a statutory auditor of the society provided that he is qualified to be so appointed and provided further that he is not a part of the committee of the society because if he is the part of the committee then as an auditor he would have to report upon his own actions and inactions.


Query : Can a person who is not a joint purchaser of the flat be a committee member?


Reply : A person who is an associate member of the society can become a committee member subject to consent of the ordinary member. For becoming an associate member one need not be a joint purchaser of the flat. A person may be admitted as an associate member of the society under an application in that behalf by the ordinary member. Upon getting elected in the committee, logically such an associate member can also become office bearer of the society.


Query : The Annual General Meeting of our society was not convened on or before 14 08 2009 and accounts finalization are taking a lot of time. Is it possible to convene the Annual General Meeting without producing final accounts?


 Reply : The annual general meeting of a co operative society has to be held on or before 14th August in respect of the immediately preceding financial year. The date of the annual general meeting can be extended for a period of three months by the registrar of co-operative societies upon a specific application by the society. Duly audited accounts must be laid at the annual general meeting of the society.    


Query : Can we claim income tax benefit on sale of plants grown in our nursery  ?

Reply : Whether plants  grown in nursery tantamounts agricultural produce or not was a matter of dispute earlier. However, with effect from assessment year 2009-10, the Income Tax Act, 1961 has been amended to provide that income from saplings and seedlings grown in nursery would be treated as agricultural income. In view of such amendment, now such income is agricultural income and therefore not taxable. Although in general laws,  to acquire agricultural land, one needs to be a farmer,  but now atleast for the income tax purposes,  one can earn agricultural income without being a farmer.

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