Category: Apartment Accounting Software

7 Powerful Guidelines for Cash Locker and Almirah placement that you should apply Now!

Have you ever thought about how you should place different objects at home as per Vastu?  Do you know the direction, colour, and material of the cash locker and almirah for wealth and prosperity? Yes, it is very important to know the placement, colour, and material before placing any object or item. Here are some Guidelines for placing an Almirah (wardrobe) or Cash Locker that you must apply now:

  1. Do not use almirah made of stones or marbles. Always prefer wood or iron almirah in the bedroom.
  2. Almirah should be placed in Southwest direction so that it opens in North or East.
  3. Almirah should be in some subtle colours like cream or light colour shades.
  4. Make sure not to have any mirror on the Southwest almirah.
  5. Placement of Almirah has different impacts for different rooms and should be placed as per Vastu guidelines.
  6. For Bedroom Almirah-
  • Place bedroom cabinet or almirah in Northeast or Southwest corner.
  • Mirrors on almirah must be avoided especially if this almirah is placed in your bedroom.
  • If there is a mirror on the bedroom almirah, make sure it is not facing the bed.
  • Avoid dark coloured wardrobe or almirah in the bedroom. Use light-coloured almirah.
  • For the bedroom, the almirah or wardrobe should open in east or south direction.
  1. For Cash Almirah-
  • Make sure the cash almirah or locker is comprised of a single door.
  • The placement of the cash almirah or locker should be such that it is facing the North. Since North is the direction of Kuber, so it is believed that Lord Kuber refills the cash.
  • Do not place the cash almirah in Northeast, more expenses will be there and ultimately loss of cash.

Conclusion- There is no substitute for hard work, but if you follow these guidelines it helps to balance the energies in the surroundings and attract more positivity to your home.


Smart Vastu tips to retain money

We are at a fast pace for growth. Growth for a better future and for a better world. But have you ever imagined what if there is no money or financial dearth in your life?  Nobody has seen the future, it’s essential to save than regret later. There are different types of solutions available in the market on money management. Retaining money is not that easy. It needs lots of planning.

Let’s talk on some easy and effective vastu changes to ensure a positive outcome and more money inflow.

Cash Almirah or Locker It is very important to understand where to keep your cash, almirah or Locker. Place the cash almirah or locker in the Southwest or South wall so that it opens in the North. This is the direction of Lord Kuber. It is believed that Lord Kuber refills the cash almirah so this is how you attract money.

Main door instructions Never place big or high trees in the Northeast direction outside your home as this creates an obstacle for the cash inflow. Also, keep the main entrance clutter free and if there is any shoe rack, replace it away from the main door or entrance.

Place a fish aquarium An aquarium is used especially to enhance money, career and luck. If used properly in the right direction, it brings wealth and abundance in the home. To know the best direction, you can read http://community.vastudekho.com/3785/attract-wealth-and-luck-placing-aquarium-vastu-tips-aquarium

Check these other important Vastu Dekho measures to ensure no blockades for the cash inflow-

  • Never place big or high trees in the Northeast direction outside your home as this creates an obstacle for the cash inflow.
  • Lord Kuber and Goddess Lakshmi like cleanliness so ensure that all the windows and doors of the house are properly cleaned. If not, they will obstruct the flow of money and wealth inside your house.
  • Leaking Taps in the house is a BIG NO. Since water is symbolic of money so it is believed that if water is getting waste then money is also getting wasted.

15 Unlucky things you should never keep at home

The way you decorate your home says a lot about you. But unknowingly, many times we bring such images, idols or showpieces that disturb our happiness and positivity and ultimately we ruin our lives by ourselves.

I was wondering why there is an increased negativity in my home until I recognize these very important facts.

Let’s talk about these 15 things that affect our lives. You may not be knowing the negative effects of these things:

  1. Broken or unused clocks- as we all know time is symbolic of Growth. It is highly recommended to avoid keeping a wall clock that is not in use or broken.
  2. Old Calendars- similar to Clock a calendar also signifies growth, so avoid keeping an old calendar on the walls of the house. Also please make sure if you are hanging current year calendar then you must keep the current month and date open.
  3. Cactus, Bonsai or thorny plants- Except Rose and medicinal plants, avoid keeping cactus and thorny plants at your home as these are inauspicious. Do not place any bonsai plant as they represent short/ little growth.
  4. Negative Images- Never keep images that depicts negativity like- sadness, loneliness, war scene, trees without fruits or flowers, nude, hunting scenes, fight scenes using swords, captured elephant, weeping or crying image. If you have such images remove immediately.
  5. Taj Mahal Picture or idol- Taj Mahal is considered as an epitome of love but it is actually a grave that symbolizes death and inactiveness. So avoid keeping Taj Mahal picture or idol at home.
  6. Broken furniture- If you have broken furniture, pots or vessels that are not in use and unrepairable. Throw them off to remove negative energy.
  7. Mirrors- Mirrors should be kept wisely. Make sure not to place any mirror in front of your bed. Your image should never be reflected when you are sleeping. Put a curtain or cloth if you have a mirror in front of your bedroom. Legends say if you have broken mirrors at home, it brings bad luck for seven years and a broken marriage too.
  8. Avoid things under your bed- Never keep anything under your bed as it causes disruptions and disturbed sleep. Also, make sure you don’t keep any footwear under your bed before sleeping.
  9. Statue or Paintings of Animals- Don’t put any image or showpiece of any wild animals and birds like snakes, owl, vulture, bat, pigs, pigeons, crows, tiger, etc. Vastu recommends not to keep any picture or statue of a single bird or animal in a couple’s room. Keeping wild animals and bird’s image or showpiece brings Violent Attitude in your life.
  10. Pictures of Ramayana and Mahabharata War scenes- Never place such pictures that depicts fight story or scenes from Ramayana or Mahabharata as it strongly brings rivalry among family members.
  11. Black Door- Avoid black door as your Main entrance door. According to Chinese Feng Shui tradition, a black door invites bad luck to your house EXCEPT if the door faces the North.
  12. Avoid placing Empty Rocking Chairs- Avoid placing empty rocking chairs at home as it invites dark forces to come and sit in it.
  13. Brocken Crockery- if you have broken plates, cups or any crockery, remove immediately. Crockery symbolizes wealth and family so when you eat on broken or chipped plates, you are subconsciously inviting failures and troubles in your life.
  14. Sinking Boat or sinking Titanic Image- I also kept Titanic image at home, until I knew its bad effects. A sinking boat depicts a failing or deteriorating relationship so if you have one in your home, throw it immediately.
  15. Nataraja- This is an image of cosmic dancer Shiva and it is found mostly in every dancer’s house. As we see it has two different meaning. One that symbolizes tremendous art form and other symbolizes destruction.

Conclusion- It is good to décor home as you love, but at the same time it is very important to know the adverse or bad effects of these decorative before it’s too late!


4 Guidelines For Choosing An Interior Designer

An interior designer works closely with you on the project and sees to it that your vision is given shape in the most effective way. Choosing an interior designer is highly subjective as the project involves personal taste and preferences. Here are a few things to consider before you select the right candidate for the job.

 

  1. Verify Their Credentials

Before you hire an interior designer, verify his or her credentials. Check if they the prerequisite license to work as an interior designer. Ask about the designer’s education, training, work experience and other credentials. A good interior designer will have had comprehensive training that includes flame-spread ratings, space planning, AutoCAD, 3-D modelling, and lighting.

 

  1. Be Clear About What You Want

You need to be sure about what you want before you can start calling prospects. Assess the level of your involvement in the creative process and the amount of guidance you need. Know whether you are open to suggestions from the designer, or if you are firm about what you have come up with. Having a clear picture of your needs will ensure that you hire the right person.

 

  1. Scrutinize Their Portfolio

Studying a designer’s portfolio will give you an idea about his or her style and working methods in similar projects.  If you can arrange for a visit to one of the designer’s completed works, you can get an up-close and personal taste of their finished project.

 

  1. Choose A Designer With Transparent Billing Methods

Understand the fee structure of your prospects in order to know if their billing methods are transparent. Find out if the designer is going to charge you a flat fee or by the hour.  Make sure you let your prospective designer know about your predetermined budget. Having a clear understanding of what you are paying for will ensure that the work is not compromised by any financial disagreement that may come up later.

Interviewing and choosing an interior designer for your project can take anywhere from a couple of weeks to months. Do not hurry, as picking the right designer is critical to the long-term success of your project. Try using the ApnaComplex database to find a verified designer to suit your needs. Selecting the wrong designer, no matter how experienced or qualified he or she may be, can lead to a décor disaster.


Standard Domestic Help Rates: Can it be Achieved?

Domestic help/maids have now become a necessity for almost all households in India. Presently, with the average citizen working in the 9-5 shift or more, basic household chores need to be taken care of. It becomes essential that you hire the right person for all these activities that affect your day-to-day lives.

 

Some of the cities such as Delhi, Bangalore, Mumbai and Hyderabad have several high-rise apartments with 700+ people residing in the same. The amount of domestic help available in such apartments should also be abundant? But this is not the case and the simple rule of economics that demand generates supply fails here. Finding domestic help is not easy irrespective of where you stay or how much you can pay. Sooner or later you do go through the pain of finding the right domestic help and retaining the same. Essentially, the story remains the same whether you reside in a big apartment or small: demands by the domestic staff for salary hikes are too frequent and largely unaffordable.

How can you tackle this problem?

 

Tips to standardise domestic help rates:

  • Prepare a rate card for all the household activities and ask residents to pay only that much.
  • Every maid needs to carry a No-objection-certificate from her previous employer so that the prospective employer ensures she/he is not switching jobs for money.
  • Residents are requested not to deviate from the rate card.
  • Any domestic help asking for more than the agreed rates are penalized.

 

Pitfalls of standardised rates:

The question that arises from the above pointers is that how easy is it to apply these rules to housing societies. A lot of residents were happy with the above-mentioned resolutions, however, some disagreed to the resolutions claiming that they were quite capitalist in nature and if doctors/engineers can demand their price, why can’t the domestic help do the same? The whole demand and supply economics lies in the scenario that if you can afford a maid for Rs. 8,000 and can very well afford it, it doesn’t matter to you if others in the apartment are paying Rs. 3,000. The others sooner or later will have to succumb to the so-called “market rate” pressure and increase the salary bars.

 

The resolutions mentioned above can only work if people living in an apartment work as a team with their associations and come to a common resolution wherein neither the domestic help is exploited nor are the employers blackmailed for sudden pay hikes.

 

Until then people with maids/drivers working with you for more than a year, good luck in maintaining them. For people searching for a good domestic help, best of luck for your quest to find the right domestic help!


Ensure Vehicle Safety with Vehicle Sentry

Vehicle Tracking of is one of the key responsibilities for security guards of every apartment. In addition, Vehicle Security itself is a very important issue for every society. With theft of vehicles increasing, it has become an imperative for societies to address this issue. How would one know whether their vehicle is safe and is still at the same place they left it? Wouldn’t it be nice to be able to keep track of your vehicle’s movement whenever you are not using it?

 

The system in most housing societies:

“Parking lot stickers” are issued to vehicle owners. These are stuck to windshields. Vehicles are permitted entry into a complex after the sticker is verified by the security guard. However, since there is no way to “deactivate” the sticker the entry of unauthorized vehicles even after they left the society cannot be controlled. Further, there is no record or log of the entry or exit of vehicles of the residents. In case of a security issue, this can be a major shortcoming.

 

Our solution:

Vehicle Sentry is a Vehicle Tracking System that is RFID based and fully integrated with the ApnaComplex cloud. At a broad level, Vehicle Sentry includes RFID tags for all authorized vehicles and RFID readers at the gate. This allows you to track the movement of your vehicle when it exits or enters the apartment gate.

 

How does Vehicle Sentry work?

Authorized vehicles are first fitted with RFID tags. Next, RFID readers are installed at the gates. These Readers come with ApnaComplex’s own custom hardware called ‘Sentry Controller’ that acts as the gateway between ApnaComplex Cloud and the RFID Readers. Sentry Controller helps sync the vehicle entry, and exit information to the ApnaComplex cloud server in near real-time, and also keeps the reader in sync with tags issued for new vehicles and de-activated tag list.

 

Important features of Vehicle Sentry:

  • When a Vehicle with valid tag passes near the gate, the light/buzzer connected to the reader will buzz indicating the detection.
  • It can also be configured to hoot for invalid tags.
  • It can be hooked up with a boom barrier for automatic entry/exit.
  • Vehicle movement information will get automatically synced up with the ApnaComplex portal.
  • Admins can check the vehicle movement records any time in the portal.
  • Data of any new tags issues or old tags deactivated will automatically update the RFID reader (as long as it has internet connectivity)

 

Benefits of Vehicle Sentry:

  1. Increased security in your society:

The movement of every vehicle entering and leaving the campus can be tracked, making it more secure. Unwanted intrusion is avoided with the use of Vehicle Sentry.

 

  1. Easy and quick Updates:

All the data for your entire apartment complex is stored in a single database. Any other RFID solution you implement will force you to maintain separate databases for vehicles and apartment units. This means you need to manually update the same information over and over again. Vehicle Sentry is an integrated solution and redundant efforts do not come into the picture.

 

  1. Cost Effective:

No extra hardware is needed apart from RFID reader installed at the gate. All functionalities are driven from the ApnaComplex portal. Your estate manager can issue and deactivate tags to be updated to the portal. In addition, you could just deploy the vehicle movement tracking with our boom barrier, making it very cost effective for the housing society.

 

This is yet another innovative approach by ApnaComplex to keep your mind free from worry while providing you with the best services possible. To know more about Vehicle Sentry and to implement it in your society, kindly submit a sales request at the Contact Us page and we will get back to you with the details.


Pitfalls of Cash Transactions in an Apartment Complex

Maintenance collection is a task that recurs every month. Committee members need to ensure that each unit in the apartment complex pays what is due and is done so in a timely manner. This is a long undertaking in itself. However, in many cases, these transactions are made in cash. While this is convenient in many cases and helps clear any immediate payments that need to be made, cash transactions come with a few pitfalls that are not easy to ignore.

Inefficiency
The time of maintenance payment sees a lot of activity within an apartment complex. Often, the committee members have to knock on individual doors to collect the dues. In other cases, the residents flock to the committee office to make the payments. Payments also need to be eventually collected and recorded from the defaulters. This takes up a lot of time from the committee member’s schedule.

Safety concerns
One of the main concerns with cash transactions is safety. When there are multiple units within an apartment complex, the amount of cash that is exchanged is a considerable sum. This opens up the possibility of misplacing or miscounting the amount. It also makes it open to theft. Further, the cash collected needs to be physically deposited in a bank. Driving around the streets with a large amount of cash can even put you at risk.

Inaccuracy
With an influx of cash payments, it falls on the committee members to ensure that the amount is recorded and reconciled. In an absence of an automated system, it has to be done manually. This leaves room for human error. The issue further extends even to cheque payments. In case of a bounced cheque, bookkeeping becomes long and tedious and prone to errors.

With tools like ApnaComplex, maintenance collections can be made almost effortless. It also sends out reminders for payments and draws out a defaulters list. ApnaComplex also offers a one of a kind and convenient Collection Gateway where members can do a NEFT/IMPS transfer of their maintenance dues to a unique “Account Number” issued by ApnaComplex. With Collection Gateway, ledgers are updated automatically with details of the amount transferred by the member and payment receipts are issued automatically. This eliminates the need for cash transactions and manual effort by the treasurer or accounts office. Going cashless has never been easier!


ApnaComplex and the end of door-to-door collections!

At the end of a working week, all everybody wants to do is relax and spend some time with family. However, every month there is one event that can get in the way of doing that: maintenance collection. A few years back, the vicious cycle of payment dues billing, reminders and door-to-door maintenance collections kept most of the apartment management associations on their toes. Add the issues of defaulters and manual bookkeeping, and the weekends could easily get as busy as the rest of the week.

Thanks to technology, the days when apartment management associations were reaching out to residents on a one-to-one basis to collect maintenance are long gone. Management associations now use sophisticated apartment management software, like ApnaComplex, to simplify their maintenance collection process to an extent of a single mouse click!

How has ApnaComplex helped the management associations in timely collections?

1. A timely reminder for payments:
Instead of sending reminders to each and every resident one by one,  the apartment management software empowers the management association to now send automatic reminders to all residents at one go via email/SMS. Residents don’t mean to default on maintenance payments, it’s their hectic schedules and absence of a timely reminder mechanism that makes them miss out on submitting the maintenance charges on time. A reminder system reduces the default rate up to a great extent.


2. Ease of paying maintenance charges:
The
ApnaComplex App comes with a collection gateway that automates monthly maintenance payments. This eases the residents from the whole ordeal of coming to the society office just to drop a cheque or pay in cash.

3. Saves Reconciliation Efforts:
Manually recording the amount received from the residents and reconciling all the payments can be quite a long process. With the advent of powerful tools like
ApnaComplex, the entire reconciliation is taken care by the App.  

4. Filter the list of defaulters:
The apartment management software enables the management association to filter the list of defaulters. The entire process gets automated and a list of residents whose maintenance payments are due can be easily drawn out along with the penalty to be charged from them. Emails/SMS to be sent out to defaulters is also automated through the software reducing the manual work up to a great extent.

One of the misconceptions was that apartment management solutions are very costly. In many cases, this misconception was cleared, when a lot of apartments started using ApnaComplex, a cost-effective subscription-based leading apartment management software with zero hardware costs and an ongoing support. The cost of the software is directly proportional to the number of units an apartment has, making it more economical than ever for the apartment management associations.


A Treasurer’s Guide to TDS on Apartment Associations

What is TDS?

TDS stands for tax deducted at source.

As per the Income Tax Act, any company or person making a payment is required to deduct tax at source if the payment exceeds certain threshold limits.

Is TDS applicable for Co-operative Housing Societies and Apartment Associations?

Yes. Under the Income Tax Act, a Cooperative Housing Society is taxable entity. It is mandatory for any registered co-operative housing society / apartment association to deduct TDS, pay deducted TDS to Government on time, file TDS Returns on time and issue TDS certificates to deductees on time.

What happens if an Apartment Association does not deduct TDS?

If an apartment association fails to deduct tax at source, then the ASSESSING OFFICER has powers to disallow whole of such payments made as expenditure when arriving at taxable profits for such apartment association. For example, ABC CHS  paid a single security agency Rs 10,00,000/- during the year and failed to deduct tax on the same, then the Assessing Officer has powers to disallow entire Rs. 10,00,000/- as your expenditure (which means ABC CHS’s “profits” will increase by Rs. 10,00,000/- and Income Tax will be levied on the same).

What is amount/percentage to be deducted as TDS by our Housing Society?

The amount of TDS to be deducted depends on 4 major components:

(a) The nature of services for which payment is being made. Services fall under different sections of IT Act.

(b) If the receiver of payment (Vendor) is  an Individual / Organization

(c) Value of a single Bill raised by the Vendor being made

(d) Total Value of Bills raised by the same vendor during the financial year

While there are many sections that are applicable, most relevant and commonly applicable sections in case of Apartment Association / Housing Society are below:

Section Details TDS Rate Threshold for TDS Applicability
Section 194C – Payment to contractor/sub-contractor – Individuals / HUF 1% a) If sum paid or payable to a contractor in a single payment exceeds Rs. 30,000
b) If sum paid or payable to contractor in aggregate exceeds Rs. 75,000 during the financial year (Rs. 1,00,000 w.e.f. 1-6-2016)
Section 194C – Payment to contractor/sub-contractor – Others 2% a) If sum paid or payable to a contractor in a single payment exceeds Rs. 30,000
b) If sum paid or payable to contractor in aggregate exceeds Rs. 75,000 during the financial year (Rs. 1,00,000 w.e.f. 1-6-2016)
Section 194I – Payment towards Rent – Plant and Machinery 2% If amount paid or payable during the financial year exceeds Rs. 1,80,000
Section 194I – Payment towards Rent – Land, Building, Furniture or Fitting 10% If amount paid or payable during the financial year exceeds Rs. 1,80,000
194J: Any sum paid by way of a) Fee for professional services, b) Fee for technical services 10% If amount paid or payable during the financial year exceeds Rs. 30,000
Section 192 – Payment of Salary As per Slab Rates of the Salary If net taxable income is more than maximum amount which is not chargeable to tax (Rs. 2,50,000 for an individual, Rs. 3,00,000 for Senior Citizens and Rs. 5,00,000 for Super Senior Citizens).

You can refer TDS Rate Chart on Income Tax Website for comprehensive list of sections and the latest rates.

All these can be easily configured in ApnaComplex Society Accounting module.

When should the Apartment Association deduct TDS?

TDS should be deducted when (a) Payment is being made to the vendor OR (b) Due date of the Bill raised by the Vendor  – which ever is earlier.

Can you give some examples of TDS calculations in Housing Society?

Below are some frequent use cases:

Example – 1: if a security agency gives a bill for Rs. 2,00,000 on Jul 1st with a due date of July 31st, and the payment is made on Aug 5th – TDS has be to accounted in July itself.

Example – 2: if you are paying a painting vendor an advance payment of Rs. 50,000 to begin work on painting – TDS of Rs. 1000 (2% of Rs. 50,000) has to deducted on the date of payment and only Rs. 49,000/- to be paid to the Vendor.  Ensure you do not deduct TDS again on the Bill when you receive the final bill from the painting vendor.

Example – 3: if you are paying a book-keeping firm in 3 installments during the year-

First Installment – Rs. 15,000 no TDS to be deducted (Total payment during financial year is Rs. 15,000 – which is less than Rs. 30,000 allowed under 194J).

Second Installment – Rs. 12,000/- no TDS to be deducted (Total payment during financial year is Rs. 27,000 – which is less than Rs. 30,000 allowed under 194J)

Third Installment – Rs. 9,000/- 10% TDS to be deducted on Rs. 36,000 (Total payment during financial year is Rs. 36,000 – which is more than Rs. 30,000 allowed under 194J – TDS needs to be deducted for entire amount of Rs. 36,000/-).

It is good practice to deduct TDS with every payment if you are sure that you will have to pay all installments during the year.

Example -4: if you are paying your Maintenance Agency in two installments during the year –

First installment – Rs. 60,000/- TDS to be deducted at 2% (as single payment is more than Rs. 30,000)

Second installment – Rs. 15,000/- No TDS (as single payment is less than Rs. 30,000 and total payments during the year is not more than Rs. 1,00,000)

Example -5: if you are paying your Maintenance Agency in three installments during the year –

First installment – Rs. 25,000/- No TDS to be deducted (as single payment is less than Rs. 30,000 and total payments during the year is Rs 25,000 which is not more than Rs. 1,00,000)

Second installment – Rs. 25,000/- No TDS (as single payment is less than 30,000 and total payments during the year is Rs 50,000 which is not more than Rs. 1,00,000)

Third installment – Rs. 25,000/- No TDS (as single payment is less than Rs. 30,000 and total payments during the year is Rs. 75,000 not more than Rs. 1,00,000)

Should TDS be calculated on the Bill Amount including GST or Excluding GST?

Taxes must be excluded for purposes of TDS calculation.

For example, if your vendor gives you a bill for Rs. 50,000+18% GST – TDS is to be calculated only on Rs. 50,000/-

By when should we pay TDS to Government and how do we pay the amount?

Except for month of March, all amounts deducted as TDS in a given month needs to be paid on or before 7th of subsequent month. For month of March the due date date of payment is April 30th.

Non-payment or late payment of TDS will attract interest @ 1.5% per month until the tax has not been deposited.

Refer Income Tax Website on How to Pay the TDS deducted to Government online. Challan  type 281 is used for TDS payments. Please refer this extensive Do’s and Don’ts to avoid errors while making the payment provided by NSDL.

What are TDS Returns?

After paying TDS every month, the apartment association needs to file TDS Returns. A TDS Return is a quarterly statement which has to be submitted to the income tax department every quarter. TDS returns has details of

(a) PAN of the deductor (your PAN number)

(b) PAN of deductees, particulars of tax paid to the government against each deductee,

(c) TDS challan information and other details

There are different forms to be used for different types of TDS deductions and deductees. For most housing societies and apartment associations, Form 26Q is the most relevant as it deals with all non-salary deductions.

Filing TDS is a slightly complex process. We recommend you take professional help from your auditor to file error-free, timely returns as there are penalties and late payment interest for non-filing/late-filing/filing with errors. If you are interested in filing on own, you can refer TDS Return filing manual.

What is the due date for filing TDS Returns?

TDS returns need to be filed for every quarter. For Apr-Jun quarter – filing needs to be done by 31st July. For Jul-Sep quarter – filing needs to be done by 31st Oct. For Oct-Dec quarter, filing needs to be done by 31st Jan. For Jan-Mar quarter, filing needs to be done by May 31st.

Filing TDS returns on time is mandatory for every deductor, failing which deductor will attract late payment fees @ Rs 200/- per day until the return is filed. However, this amount shall not exceed the amount of tax. In addition to this ASSESSING OFFICER may direct the deductor to pay penalty minimum of Rs. 10,000 which may extend to Rs.1,00,000.

My Vendor is asking me NOT to deduct TDS on his/her payment as they are exempt. What should I do?

Request you vendor to submit a letter/certificate issued by Income Tax Department providing such exemption. (In order to get such certificate your vendor needs to reach out to IT department seeking exemption by filing Form 13/15G/15H.)

My Vendor whom I deducted TDS is asking me to provide TDS Certificate / Form 16A. What do I do?

TDS certificates are issued by the deductor (the person who is deducting tax) to the deductee (the person from whose payment the tax is deducted). . These certificates provide details of TDS for various transactions between deductor and deductee. It is mandatory to issue these certificates to your Vendors every quarter. There are mainly two types of TDS certificates issued by the deductor:

(a) Form 16 : is issued by the employer to the employee incorporating details of tax deducted by the employer throughout the year

(b) Form 16A : is issued all non-salary related deductions. This is most relevant to Apartment Associations.

To get Form 16A: Its best to take professional help to obtain the same. If your auditor has filed your TDS returns, usually s/he will provide the same to you. Please ensure you have obtained them and mailed / distributed the same to your vendors every quarter.

If you are self-service oriented:  Login to Government’s TRACES (TDS Reconciliation Analysis and Correction Enabling System) You may have to register as a new user if this is the first time your society is deducting TDS.  Post that follow the steps on the TRACES system to download Form 16A.

What are pre-requisites to deduct TDS?

Apartment Association needs to have a TAN (Tax Deduction Account Number). It is 10 digit alpha numeric number required to be obtained by all entities who are responsible for deducting or collecting tax. It is mandatory to quote TAN allotted by the Income Tax Department on all TDS returns. The procedure for application of TAN is very simple and can be done online.  Apply For TAN  on NSDL Site.

Does ApnaComplex Accounting handle TDS?

Absolutely. In ApnaComplex Society Billing and Accounting module, you can have the ability to:

(a) Capture PAN/TAN/TDS Rate for each vendor as  part of master setup.

(b) Record Vendor Bills and Advance Payments to Vendors along with TDS deducted. ApnaComplex will automatically calculate TDS for a given vendor’s bill based on the TDS rate configured.

(c) Easily maintain different TDS Payable Ledgers per different sections (such as 194C, 194J)

(d) Get Monthly Report of all TDS Deducted to arrive at your liability to Government

(e) Record the payments made to Government under TDS/Tax Payments section.

(f) All necessary accounting entries are auto-magically taken care of by the platform.

In addition, ApnaComplex has a strong eco-system of partners offering Accounting and Auditing Services to Housing Societies using ApnaComplex platform. You can reach out to us with your society details and we shall put you in touch with professionals you can ensure TDS compliance for your apartment association.


Disclaimer: This information is offered as a public service. While we try to make it accurate as possible as on the date of publication, the laws change and more importantly the way we interpret laws could also change. We cannot promise that this information is always up-to-date and correct. We strongly recommend you to always consult appropriate professional advisers for your society to ensure compliance. We are not responsible for any actions or non-actions that are done by you based on the information present in this article or any other article on this blog.


go cashless

6 Reasons Why A Cashless Society Is Here To Stay

With the new cashless wave gaining momentum in India, societies all over are adopting various ways of doing their bit to forward this initiative. Here’s why everyone should go cashless starting from today –

 

(Firstly, to avoid this…)

go cashless

 

  • Track dues and payments automatically

Now, Indians will make payments for most purchases/liabilities online. Automatic withdrawal and payment from connected accounts are also an option. So, there are no dues pending at the end of every month and that gets ticked off your to-do list instantly, without even having to make a confirmation.

go cashless

 

  • Cloud-based auto sync in real-time

All transactions are updated in books online and accounts are kept up-to-date after every transaction. Even people not so good at math will like this number game. Going cashless isn’t so bad after all.

go cashless

 

  • No long queues to wait around in

Queues that move quickly are a crowd favourite. A place where personal presence is optional is looked forward to by everyone, not just by introverts. Anyone who can’t be at a particular place at a specific time would appreciate such a development.

go cashless

 

  • Countrywide acceptance of this stance

This line of thinking will be eventually accepted and put into practice all over the nation. So, purchasing most things gets easier when done directly using an e-account.

go cashless

 

  • Chances of robbery & theft are low

When there isn’t enough to rob, why would someone painstakingly make the effort to break in and steal? Travelling outstation also gets easier since staying connected with your funds becomes more flexible. This is a great move for tourists looking forward to exploring our country.

go cashless

 

  • You can’t get lazier than swiping a card / pre-storing payment details just ONCE!

There will be no such thing as overusing your card, especially during difficult times. Swipe it for a purchase and you’re good to go. No more hunting for change in your pocket / wallet / bag / other nooks and crannies they managed to slip into. Added bonus: It just adds to your laziness. Now, who would want to go against that?

go cashless

 

But, a move like this cannot be taken for granted. Regular monitoring of one’s own funds is the primary reason for this move to be able to thrive. You can check your account details online without the hassle of visiting the bank by visiting the website provided by it instead. The web and mobile applications made available by banks equip you with another option to go cashless.

 

Let’s make a conscious and informed effort towards having a cashless society.

 

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