Hello Kishwar. I can help you with how to calculate sinking fund for housing society. According to the Bye Law No. 13 (C), ““The General Body can decide the Sinking Fund contribution, subject to the minimum of 0.25% per annum of the construction cost of each flat incurred during the construction of the building of the Society and certified by the Architect, excluding the proportionate cost of the land”.
NoBroker InstaCash Loan
Get upto Rs. 10 Lakhs Instantly in your Bank Account with hassle free auto repayment.
Instant approval and disbursement
Interest rate starting 12.99%
Your Feedback Matters! How was this Answer?
NoBroker Personal Loan & Home Loans
✔
Max Funding✔
Lowest Interest Rates✔
Quick Sanction✔
Doorstep Assistance✔
No Hidden Charges
Know your Borrowing Capacity
Check Eligibility
Reduce your EMIs
Transfer Now
The Housing Society has a lot of rules and regulations of its own and those need to be understood well to avoid chaos and confusion in the future. My uncle is a member of the society and last month he was talking about the Sinking Fund with my father. I had never quite heard of this term, so I got interested to know
how to calculate sinking fund for housing society and what it is. He said that it is a fund that can be used by the society for non-routine capital expenditure without permission of the registrar, subject to approval of the general body through a notice.
Contact NoBroker Legal Services experts for any real estate queries anytime
How is the housing society sinking fund calculation done?
My uncle said that in general as per Bye Law No. 13( C ), the General Body can decide the Sinking Fund Contribution that is subjected to the minimum of 0.25% per annum of the construction cost of each flat and is certified by the architect excluding the proportionate cost of the land.
The
sinking fund calculation cooperative housing society relies on a formula. My uncle explained it to us vividly, so let me tell you how it is done
Sinking Fund Payment Amount = (A(r/n))/ ((1+r/n)^nt)-1)
Where
A = targeted amount to meet its purpose
n= payment frequency or number of payments per year
t= number of years over which payments will be made
r= annual interest rate
If a society has decided to accumulate Rs 2,000,000 over 12 years and lets the interest rate be 5% and quarterly payments, then the answer will be
(2,000,000*(0.5/4)) / ((1+0.05/4)^(4*12)-1)) = Rs 30,661.50
This is what I got to know on
how to calculate Sinking Fund for Housing Society.
Read More:What are the car parking rules in Housing Society?
What are the rules for the members of housing society?
Who are considered member of a housing society?
How To Calculate Sinking Fund For Housing Society?
Kishwar
5320 Views
2
2 Year
2022-09-05T10:21:21+00:00 2025-03-18T09:51:44+00:00Comment
Share