minimum prescribed sinking fund

In many Indian cooperative/group housing contexts, the **sinking fund** is a reserve kept for **major capital repairs or replacement** of long-life assets, such as: - structural repairs - lift replacement - waterproofing - painting of common areas - major plumbing/electrical line renewal ## Minimum prescribed sinking fund There is **no single all-India minimum** because the rule depends on: - the **state cooperative law / society bye-laws** - the **type of society** - sometimes directions from the **Registrar** or local authority ### Common practice A society’s bye-laws often prescribe that the sinking fund be collected as a **percentage of the construction cost of each flat/unit**, excluding land cost. In some states, a commonly seen minimum is **0.25% per annum of the construction cost** of each flat/unit, but this is **not universal** and should be checked against your society’s applicable bye-laws. ## What to check Please verify: 1. **State** where the society is registered 2. **Registered bye-laws** of the society 3. Any **latest circulars/amendments** from the cooperative department/registrar 4. Whether the charge is calculated on: - construction cost - carpet/built-up area - equal contribution basis ## If you want a precise answer Send me: - your **state** - whether it is a **cooperative housing society / apartment association / RWA** - your **bye-law version** if available I can then help you identify the likely rule. **Professional review note:** For exact levy and accounting treatment, please confirm with your society’s auditor, accountant, or cooperative law advisor using the current registered bye-laws.