Is interest payable to Ordinary Members?

Rahul Rai

We want to form a co-operative, and while surfing found your Mil ID on the internet. Before presenting the opportunity to my board, I want to clarify two very precise points:

1. Is interest payable to Ordinary Members of the Society subject to With Holding Taxes?

2. If we form an Education & Training Fund inside the society, and then Members Educating on Free Lance Basis as per the requirements of the society are compensated, is such compensation subject to With Holding Tax?

I C Naik

In both cases taxes as applicable have to be withheld. It is the receivers of income that bears the burden and not the Society.

 

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