Housing Society Accounting & Compliance Terms

Accumulated Fund

The Accumulated Fund is the net worth of a co-operative housing society — the cumulative surplus of income over expenditure across all years, appearing on the liability side of the Balance Sheet as the society's corpus.

AGM Quorum

AGM Quorum is the minimum number of members who must be present at the Annual General Meeting for it to be validly constituted and empowered to pass resolutions.

Authorised Officer (Administrator)

An Authorised Officer (commonly called administrator) is a government-appointed official who takes over management of a Maharashtra co-operative housing society when the elected Managing Committee cannot function, under Section 77A of the MCS Act 1960.

Bye-Law 46

Bye-Law 46 is the provision in Maharashtra's Model Bye-Laws for Co-operative Housing Societies that mandates the creation and maintenance of a Sinking Fund for capital expenditure.

Bye-Law 47

Bye-Law 47 mandates the collection and maintenance of a Repair Fund in Maharashtra housing co-operative societies, separate from the Sinking Fund, for routine maintenance and repair of common areas.

Bye-Law 173

Bye-Law 173 governs the Transfer Fee that a housing co-operative society may charge when a flat changes ownership, setting the maximum permissible fee and the procedure for approving transfers.

Bill Heading

Bill Heading (or charge head) is a named line item in a housing society maintenance bill, representing one category of charges — such as Maintenance, Sinking Fund, Repair Fund, Parking, or Non-Occupancy Charges.

Bill Lot

A Bill Lot is a batch of maintenance bills generated together for a specific period (typically one month), identified by a unique lot number, so all bills in that generation run share the same reference.

Bye-Law 114

Bye-Law 114 prescribes the size of the Managing Committee for Maharashtra co-operative housing societies on a sliding scale based on membership, including mandatory reserved seats for women, SC/ST, OBC, and VJ/NT/SBC categories.

Bye-Law 117

Bye-Law 117 lists the disqualifications that make a housing society member ineligible to be elected or co-opted to the Managing Committee, including unpaid dues, criminal conviction, and proven financial misconduct.

Co-option

Co-option is the process by which the existing Managing Committee fills a casual vacancy — caused by a member's resignation, death, or disqualification — by appointing a replacement from among society members, without holding a fresh general election.

Contra Voucher

A Contra Voucher is an accounting document used to record transactions that involve the transfer of funds between two accounts of the same entity — such as from the society's current account to its fixed deposit, or from petty cash to the bank.

Defaulter Notice

A Defaulter Notice is a formal written communication from the managing committee to a member who has not paid maintenance dues for a specified period, informing them of the outstanding amount and the consequences of continued non-payment.

E-2 Intimation Form

The E-2 Intimation Form is the prescribed notice that a Maharashtra co-operative housing society with more than 200 members must send to the Co-operative Election Authority six months before its Managing Committee's term expires, to trigger the election process.

Form J (Audit Report)

Form J is the statutory audit report format prescribed under the Maharashtra Co-operative Societies Act for housing societies. It is prepared by the empanelled auditor after examining the society's annual accounts.

Form N (Annual Report)

Form N is the annual report that the managing committee of a Maharashtra co-operative housing society must present to members at the Annual General Meeting (AGM) and file with the Registrar.

GST on RWA Maintenance

Goods and Services Tax (GST) applies to housing society (RWA) maintenance charges when both the per-member monthly charge exceeds ₹7,500 AND the society's total annual revenue exceeds ₹20 lakhs.

Income & Expenditure Account

The Income & Expenditure Account (I&E) is the annual financial statement of a housing co-operative society that shows all income earned and expenses incurred during the year on an accrual basis, resulting in a surplus or deficit.

Internal Audit

Internal Audit is a periodic review of a housing society's financial records conducted throughout the year (quarterly or half-yearly) by the society's CA or an independent auditor, to identify errors before the statutory audit.

ITC Reversal for Societies

ITC Reversal refers to the requirement for a GST-registered housing society to reverse (give back) a portion of the Input Tax Credit it claimed, when the credit relates to activities or members that are not subject to GST.

Member Ledger

A Member Ledger is an individual account maintained for each flat/member in the society, showing all bills raised, payments received, and the outstanding balance for that member.

MCS Act 1960

The Maharashtra Co-operative Societies Act, 1960 (MCS Act) is the primary legislation governing the formation, registration, management, audit, and dissolution of co-operative societies in Maharashtra, including housing societies.

Managing Committee

The Managing Committee is the elected governing body of a co-operative housing society, responsible for day-to-day administration, financial management, and compliance with the bye-laws and the MCS Act.

Managing Committee Election

The Managing Committee Election is the mandatory process, held once every five years, by which members of a Maharashtra co-operative housing society elect their governing committee through a secret ballot supervised by the State Co-operative Election Authority (SCEA).

Non-Occupancy Charges

Non-Occupancy Charges (NOC charges) are additional monthly charges levied on a flat owner who lets the flat to a tenant or leaves it unoccupied, compensating the society for extra wear on common amenities.

Nomination Form

A Nomination Form is the document by which a housing society member nominates a person to receive the membership and interest in the flat upon the member's death, without requiring probate or succession.

Office Bearers

Office Bearers are the three principal functionaries of a housing society's Managing Committee — the Chairman, Secretary, and Treasurer — elected by and from among the elected committee members at the first committee meeting after a general election.

Repair Fund

A mandatory reserve fund for routine repairs and maintenance of common areas, as distinct from the Sinking Fund which covers capital expenditure.

Receipts & Payments Account

The Receipts & Payments Account (R&P) is a cash-basis summary of all money received and paid by a housing co-operative society during the year, starting and ending with cash/bank balances.

Returning Officer

A Returning Officer is the government official deputed by the State Co-operative Election Authority (SCEA) to conduct and supervise a housing society's Managing Committee election from nomination to result declaration.

Sinking Fund

A mandatory reserve fund collected from members each month to cover future major capital expenditure — structural repairs, lift replacement, waterproofing, or any large asset renewal.

Supplementary Bill

A Supplementary Bill is an additional bill issued to a member outside the regular monthly billing cycle, typically to charge for arrears, interest on late payment, a special levy, or a one-time charge.

Sub-Letting Charges

Sub-Letting Charges are a one-time or annual fee charged by a co-operative housing society when a member formally requests permission to rent out their flat to a tenant.

Share Certificate

A Share Certificate is the document issued by a co-operative housing society to a member certifying their ownership of a specific number of shares in the society, which corresponds to their flat ownership.

Society Ledger

The Society Ledger (or General Ledger) is the master set of accounts for the housing society, containing all expense, income, asset, liability, and reserve accounts from which financial statements are generated.

Special Resolution

A Special Resolution is a resolution passed at a General Meeting of a co-operative housing society that requires a higher threshold — typically three-fourths of the members present and voting — for matters that significantly affect all members.

Statutory Audit

Statutory Audit is the mandatory annual examination of a co-operative housing society's financial records by an empanelled auditor, as required under Section 81 of the Maharashtra Co-operative Societies Act 1960.

State Co-operative Election Authority (SCEA)

The State Co-operative Election Authority (SCEA) is the Maharashtra government body created under Section 73-CB of the MCS Act to independently conduct and supervise elections for all co-operative societies in the state, including housing societies.

Section 77A

Section 77A of the Maharashtra Co-operative Societies Act 1960 empowers the Registrar to intervene and manage a co-operative housing society when its Managing Committee is unable to function, using a graded three-step framework that treats outsider appointment as a last resort.

Transfer Fee

Transfer Fee is the one-time charge a housing co-operative society collects when a flat is transferred from one member to another, to cover administrative costs of updating membership records.

TDS on Contractor (Section 194C)

Section 194C of the Income Tax Act requires housing societies to deduct Tax Deducted at Source (TDS) when making payments to contractors or sub-contractors above the prescribed threshold.