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.


Five Quick Tips about Better Apartment Management

quick-tips-271x300 Apartment management is becoming one of the most challenging jobs, with growing sizes of apartment complexes in India. With most of the members offering a voluntary service to their apartment residents as a management committee member, the personal life of an individual gets quite affected in dealing with apartment maintenance issues.

At times it becomes difficult for new management committee members to understand which areas to concentrate on to offer their residents a superior experience of staying in the apartment.  Five quick tips for management committee members for better apartment management are: 

Automate Society Billing & AccountingFinancial matter often becomes a bone of contention between committee members. Accounting and book keeping, income and expense tracking, penalty calculation should be streamlined as soon as possible. Try to reduce your reconciliation efforts and try to 100% automate your billing and collection effort. The best option is to employ a software that incorporates tools such as Income Tracking, Penalty Calculation, Maintenance Charges Payment Reminders, Metered Utilities and Payment Gateway offering significant effort reduction without disturbing your current accounting practices and to help you in better apartment management.

Resolve Resident Complaints Efficiently – Resident complaint management is one of the toughest areas one has to deal with as a management committee member. Ensure you set up a system as soon as possible for central tracking of resident complaints, suggestions and requests. The whole process of residents filing a complaint and committee members resolving and closing the issue needs to be automated. Use a software that will help you track the complaints at various stages with an auto escalation mechanism to escalate unresolved complaints. This will increase the resident satisfaction and enhance their faith in the management committee.  

Communicate effectively with your Community – Effective communication with your community is very important. Use community collaboration tools to post notices and reach out to everyone, securely share photos of community events within the society, have healthy discussion on any topic via discussion forums, send important messages/emails to other committee members or residents. Create and publish articles like Policy on Pets, Waste Management Guidelines, Diwali Celebration Tips, and Monthly Newsletter for residents – the list is just endless. For better apartment management, it will be an intelligent move to use a software that offers the facility to use all these communication tools at one go and create a strong communication link with your community.

Manage Apartment Facilities & Staff Smartly – Residents often complaint about how the apartment facilities are not maintained well by maintenance staff etc. Save yourself from the pain of manually overlooking asset tracking, inventory management, parking lot management, maintenance staff and service staff management. Offer superior experience to residents by empowering them to book an apartment facility online! Maintain a central record of visitors visiting your apartment for security purposes. Managing and keeping a check on all the above mentioned areas is a herculean task. What you need is an apartment management software that does it all for you and help you manage all apartment facilities smartly.

Proficiently manage society data – Maintain directory of owners, residents and flats in your apartment in a systematic manner for reaching out to them easily. Maintain list of office bearers and committee members for communicating with them in an effective manner. Centralize all your society data in one place for your own convenience. Create an online presence for your complex and provide details such as amenities available, directions, location of the complex to visitors or interested parties outside the complex.

It’s time for you to move away from countless number of confusing spreadsheets and remember to become a management committee member you don’t need to learn about accounting and facility management anymore. A good apartment management software can do all that for you. What you need to focus on is creating an inclusive culture so that residents collaborate with you to manage your apartment in a better manner.

Don’t just be a complex, be a smart apartment complex. Get your Society on ApnaComplex.com – Today for free!


Seven Habits of Highly Effective Management Committees

ApnaComplex conducted a better apartment management conference on November 15, 2014. Better Apartment Management conference covered different aspects of managing apartments more efficiently and offered several useful tips for Managing Committees.

Managing Apartment Complexes is a tough job – Managing them efficiently is even tougher! The problems start cropping up when everyone wants to run an apartment in his/her way. Significant part of the problem lies in the fact that the people who manage the apartment complexes are volunteers with no formal background in dealing issues surrounding the apartment management.

To bridge this knowledge gap, Raj Sekhar Kommu, Co-founder of ApnaComplex conducted a session on – “7 Habits of Highly Effective Managing Committees”. Rajs has been a part of managing committees in several capacities for 5 years and understands the pain points of both managing committees and residents. His session aimed to throw light on the fact that what traits or habits make a few managing committees more effective and successful than others in managing their apartments.

Highly effective management committees bring about a significant positive change in any apartment community. Let’s explore what are the seven habits that make some managing committees better than others:

#Habit 1: Works as a team

#Habit 2: Always Communicates

#Habit 3: Takes Responsibility

#Habit 4: Highly disciplined

#Habit 5: Smart Financial Control

#Habit 6: Inclusive Culture

#Habit 7: Cooperates

We will be publishing a series of posts on each habit to help you understand how the above mentioned habits are a pre-requisite for any effective management committee. Log onto www.apnacomplex.com regularly for knowing more about managing your apartment in a much more efficient manner.


Is controlling domestic help rates in apartments becoming essential?

domestic-helpDomestic help/maids have now become a necessity for almost all households in India. Presently, with both men and women working in the 9-5 shift or more, the basic household chores need to be taken care of by the maids, cooks, nannies, drivers etc. 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 as easy as earlier 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. The residents of an apartment always complain that how maids, cooks and drivers in general force residents to increase their salary. A lot of household help quit frequently to join new employers who pay them higher or just become very adamant and demand for immediate pay hikes/bonuses forcing their employers to reconsider their compensation.

 Almost all apartment associations have discussed these issues and attempt to come up with regulations to control the rates of maids in an apartment such as below:

  • 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 is penalized.

 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 an 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!


Announcing Survey feature in ApnaComplex

In yet another first, ApnaComplex now has ability to conduct “Surveys” and gather detailed feedback on any aspect related to the society. Surveys offer ultimate flexibility for Committee Members to carefully consider various opinions in the community. This feature is available to all our users including the Free edition users.

Administrators can create a Survey with a title, detailed description which will be presented to the survey respondents. While creating, admins can also select the respondent category such as owners, residents or admins and set dates for survey validity.

Once survey is created, admins can proceed to add any number of questions to the survey. Questions can be of different types such as multiple choice questions, text based questions and the user can be asked to select only one or more among the options provided. Questions can also be marked if it is mandatory to answer them before proceeding to next questions.

Creating a Survey in ApnaComplex - Sample

Creating a Survey in ApnaComplex – Sample Screenshot

While creating the Survey, administrator can make the Survey a ‘Secret’ where the respondent’s details will not be revealed. Also, admin can chose to publish the results to every one OR only to the administrators.

Once all questions are added, admin can publish the survey for members to respond to along with an expiry date for the poll.

Respondents can answer the survey questions, go back and modify them before finally submitting them.

Admins can view the response reports wen they wish when the survey is in progress and also download the response summary as excel.

How is Survey different from Polling Booth?

ApnaComplex has Polling Booth since beginning. Polling Booth primarily offers a mechanism where members can “vote” on a particular question and indicate their choice among the various options listed. Its not possible to collect verbatim feedback in polling booth. It is to be used for something such as ‘Election’ or for voting for an AGM resolution etc.

Survey is much more elaborate and flexible. Committees can create their own Forms and Questionnaires for any activity in the society such as data collection, detailed qualitative feedback on vendors, facility audit checklists, event registration forms – possibilities unlimited.

Are you not happy that there is a team out here thinking about Apartments and Managing Committees like yours all the time and trying to make life easy for every one of you 🙂

What are you waiting for? Go to Forums->Surveys and start your first survey!


Become Better at Managing your Apartment Complex – Get your society on to ApnaComplex – Today!

ApnaComplex is India’s leading web based Apartment Management Platform.

ApnaComplex is designed to make the life of residents and owners lot better by bringing in more transparency and accountability in managing a housing society. Check out why we say ApnaComplex is Best Apartment Management Software and sign up your society today to get the benefits! We offer ApnaComplex – Free Edition with awesome capabilities which you can use free of cost forever.


Should Service Tax be collected from Members of Apartment Association?

Apartment Associations are liable to pay service tax to Government of India when one or more members of the association has contributed more than Rs. 5,000/- per month to the association (refer this post for clarity). As per the law, the liability is on the Society to remit service tax – irrespective of the society collecting the same from members.

The society has couple of options to take to pay the service tax to the government:

Option-1: Service Tax is a destination based tax – means the service tax can passed to the members in question directly, collected and then paid. In societies where the contribution is same by all members or in societies where every member is contributing more than Rs. 5,000/- there is usually no issue in collecting the same from all members and remitting the same to government. However, in quite a few apartment complexes, there is a situation where there are only few members who cross the Rs. 5,000/- per month limit. This means that these few members will have to pay significantly higher charges than the rest and it can create disharmony in the society. There will be pressure on the executive committee to review the total charges collected to keep it below Rs. 5,000/- so that few members do not end up paying significantly high rates.

Option-2: Do not to collect the service tax from the members – but compute the service tax to be remitted to Government on cum-tax basis and remit the same. For example, if there are 10 members who are paying Rs. 6,000/- per month – then the service tax to be paid can be calculated on Rs. 60,000 (total contribution by service tax eligible members). The tax to be paid would be 60000 * 12.36/112.36 = 6600/-. This is a much preferred option for cases where only few flats are to pay service tax. The society can remit this payment to Govt. Also, since society can claim cenvat credit on the service tax to be paid this approach would ensure there is no additional burden on few members of the society.


The Uttar Pradesh Apartment Act 2010, Rules and Model Bye-Laws

Below are copies of different official documents for apartment communities of Uttar Pradesh




Want to manage your apartment easily and financials transparently in your Housing Society? – Get on to ApnaComplex – Today!

ApnaComplex is India’s #1 mobile and web based Apartment Management Software.

ApnaComplex is designed to make the life of residents and owners lot better by bringing in more transparency and accountability in managing a housing society. Check out why we say ApnaComplex is Best Apartment Management Software and sign up your society today to get the benefits! We offer ApnaComplex – Free Edition with awesome capabilities which you can use free of cost forever.


ApnaComplex Management Tools Enhancement: Track Ownership History of every Flat/Villa

We have released a new tool as a part of Society Management Tool-set – ‘Ownership History’.

Resale of flats is a very common transaction in most housing societies and there is a need to track such re-sale or ownership change as it impacts the association member list. Quite a few societies charge the new owners a ‘Transfer Fees’.

ApnaComplex, the leading Apartment Management Software now has a new module just to track ownership changes. All along, ApnaComplex was able to track changes to resident data through the ‘Member Directory’ module. The new module exclusively focuses on Ownership Changes and to maintain the history of ownership of a given flat / villa.

Administrator can now add/delete/update Ownership Records to each flat. When adding a new Ownership Record, admin will have to enter the various new information like owner name, purchase / registration date and other information necessary to create the record. Any past dated or future dated records can be added as well. The system automatically considers the record with latest purchase date as the current owner. All records with past dates will continue to be there in the system and can looked up at any time.

Like with all other bulk upload features in ApnaComplex, Administrators can import data into the portal using an excel sheet (template provided) here as well! Makes life easy, doesn’t it?

Members will not be able to see these records and exclusive access is provided only to Administrators.

With the already existing features of Tenant Lease Management and ability to associate multiple documents to every flat / unit, the ownership tracking nicely fits into the society data management tool-set.

Head to Reports->Registers->Ownership Details to get started!


Want to manage your apartment easily and financials transparently in your Housing Society? – Get on to ApnaComplex – Today!

ApnaComplex is India’s #1 mobile and web based Apartment Management Software.

ApnaComplex is designed to make the life of residents and owners lot better by bringing in more transparency and accountability in managing a housing society. Check out why we say ApnaComplex is Best Apartment Management Software and sign up your society today to get the benefits! We offer ApnaComplex – Free Edition with awesome capabilities which you can use free of cost forever.


Legally Compliant Online Payments for Housing Societies and Apartment Owners Associations

Background: Housing Societies and need for Payment Gateway

Housing societies, welfare associations and folks managing multi-tenancy buildings/ complexes keep collecting recurring dues from the members. Members usually pay their dues through Cheques, and these days transfer money through NEFT to the Society Bank Account. Non-resident owners also use one of these modes to pay their dues. However, keeping of track of payments from several members, validating the bank transfers, accurately issuing receipts is a big issue for the treasurers and accountants and the amount of money that lies in “Suspense” account head keeps increasing as mapping the payment received to the correct flat is quite time consuming. This triggers a chain of issues – complaints from members of not getting receipts, unable to accurately impose late payment charges properly, accurate defaulters reports and so on.

Advantages of an Online payment system where members can pay their maintenance dues and get an instant receipt from the are now obvious – in addition to getting money securely into the bank, treasurers/accountants can heave a sigh of relief due to tremendous savings in the reconciliation efforts and other issues mentioned earlier!

As everyone is aware – ApnaComplex offers a Payment Gateway module using which members of Housing Societies can pay their dues online and avoid all the reconciliation problems mentioned above.

A word of caution: Integrating with Payment Gateways and offering such a solution needs to be thorough, requires lots of due diligence to ensure safety of the money and comply with all relevant regulations. There have been providers in the market offering solutions for Housing Societies that were not fully legally compliant and were forced to change their solution. This has created a dent in the confidence of Housing Societies to go fully online. With the vast industry experience the founding team brings to the table, trust ApnaComplex to not offer services hastily without appropriate due diligence.

The online payment gateway platform offered by ApnaComplex is a reputed Payment Gateway operating in India since past 7 years and is compliant with PCI, ISO 27001 & RBI norms, whereby funds are settled directly to existing bank account of the society, via trusted banks in India for your society’s members to transact online with confidence.

Here is the detailed explanation on the online payment gateway integration in ApnaComplex.com that can clarify various questions we keep receiving from our prospects and customers. ApnaComplex is an alliance partner for one of the leading payment gateways in India who enables the online payment platform for Housing Societies.

Enabling Payment Gateway for a Society

As a first step, like any other business that collects money, the Housing Society or the RWA which is going to collect the funds electronically shall be setup with the Payment Gateway as a “Biller” (also referred as Merchant in Online Payments terminology). For this, the Society / RWA has to submit legal documentation related to AGM resolution authorizing the association to be a biller and other KYC documents. Once verification and scrutiny of the documents is done, the Payment Gateway shall register the Society/RWA as a ‘Biller/Merchant’. This entire process is co-ordinated by ApnaComplex.com with the society. Upon successful verification and merchant registration, merchant details are provided to the society by the Payment Gateway. The same merchant details shall be updated in the ApnaComplex portal, and the online payment facility is turned on for the society’s portal hosted on ApnaComplex.

Making a payment using Payment Gateway

  • A members logs into ApnaComplex.com and selects to make a payment using Payment Gateway.
  • ApnaComplex redirects the user to Payment Gateway along with the Merchant details of that society.
  • Member enters amount to be paid, and other credit card / net-banking details on the Payment Gateways’ pages and completes the transaction
  • The funds flow from the members account/credit card to the account of the Payment Gateway. This is an RBI monitored bank account.
  • Upon successful payment, the payment gateway redirects the member to ApnaComplex portal’s payment confirmation screen along with the amount paid
  • ApnaComplex mails a PDF receipt to the member and also updates the member’s ledgers and other accounts to reflect the payment
  • The payment gateway transfers the money to Society’s Bank Account directly.
  • It is important to note that the money paid by member NEVER comes to an account which is related to ApnaComplex.com in any way. The funds flow from the Member’s Account to the Society’s Bank Account using RBI approved and monitored channels – thus making this a fully legally compliant mechanism for making online payments.
Online payment process in ApnaComplex

Online payment process in ApnaComplex

Other options we had

Another way of offering the payment gateway to housing societies would have been to become payment aggregator ourselves. We have decided against that as that would deviate us from our core business and made us a electronic payments organization. Instead, we chose to partner with a well established and respected payment gateway player as it offers the following advantages:

  • Proven Technology Stack – No need to Re-invent the Wheel: The complete technology stack that processes your funds is used by thousands and thousands of merchants daily (including some of the leading e-commerce sites in India) and is owned by an organization which provides payment gateway functionality in around 50 countries around the world.
  • Fraud Detection: The complete system of managing the funds and getting them transferred is done by a leader in this area with sophisticated tools for fraud detection and risk management.
  • Easy Compliance: As the payment gateway is one of the leaders in the space, they keep their systems updated as per RBI guidelines that can change from time to time.
  • No Additional Benefit: There is no additional benefit that we can offer to our customers by we becoming a payment aggregator ourselves. Instead that exposes them to greater risk due of non-complaince and fraud due as mentioned in earlier points.

We have always valued legal compliance over business and are glad that we are providing the users of ApnaComplex.com an effective, compliant and with leading edge technology. If you have more questions, please feel free to Contact Us with your queries.


ApnaComplex releases enhanced Penalty Rules Engine for Apartment Associations

In yet another first and setting the standards for web based society accounting, ApnaComplex announces the availability of a new Penalty Rules Engine to all the customers. While ApnaComplex all along had the ability to calculate interst rate based on a percentage rate of the reducing outstanding balance, we now enhanced the penalty calculation engine to be able to calculate penalty for a wide variety of cases such as one time late penalty, per day penalty, %age on invoice value, %age of the outstanding value, slab based penalties etc. All the treasurer needs to do is to set choices for various criteria and get the penalties at the click of a button.

Listed below are some of the cases which ApnaComplex Penalty Rules Engine supports. Do note these are just a small list of possibilities. The engine supports nearly innumerable penalty schemes. Treasurers now can calculate penalty for one or more charge types (not just maintenance charge – but any charge type and any number of types) and you can get a fair idea of the powerful engine with the examples below:

Examples of Penalty Calculations supported by ApnaComplex

1. Calculate penalty at a flat rate of Rs. 25/- per every day of delay.
2. Calculate penalty for at a rate of Rs. 500/- for 1st week of delay and Rs. 1000/- there after
3. Calculate penalty at a compounded rate of interest on the invoice amount.
4. Calculate penalty at 10% per annum on the maintenance charge for a delay of a week and 20% of the maintenance charge if the payment is delayed by more than week
5. Calculate penalty at 2% per month on reducing balance as per the payments received against an invoice.
6. Apply penalty charges only if the outstanding amount is greater than a minimum amount
and many more..

Now, don’t you call this a true Diwali Gift for the treasurers!?