Income tax on fixed deposits in the name of Apartment Association
Dear sir,
Our Apartment (with 20 flats) is having Association.
This Owners Welfare Association is registered and we also obtained PAN number.
We have opened a Savings Bank account in "The Visakhapatnam Co-operative Bank"in the name of the Association.
The excess amounts available from monthly collections are kept in the SB account.
We have also collected corpus fund from all 20 flat owners , which is deposited in this co-operative bank in the form of Fixed Deposit. We have submitted the PAN copy of the Association also to the bank.
The Visakhapatnam co-operative bank is deducting 10 % TDS on interest earned on these fixed deposits and in case TDS is not to be deducted, they are asked us to get "Exemption certificate from Income Tax authorities.
Please suggest us how to get this Exemption Certificate from IT authorities. The association is not doing any business and only taking care of the maintenance of the Apartment.
Please help and suggest reg this.
Regards
D. DEEKSHITULU,
TREASURER