Housing Society Accounting & Compliance Terms
Plain-English definitions of the legal, financial, and compliance terms every treasurer, CA, and committee member should know.
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.
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.
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.
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.
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.
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.
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.
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.
30 terms defined