Education society query
This query is : Resolved
18 August 2014
We have just formed. the education society and running a play school under it... and our gross monthly income is 2500 I want to know about income tax procedure and accounts related..
18 August 2014
If you are going to run a educational charitable society, you have register the society with jurisdictional Commissioner of Income Tax, provided if you fulfill the following conditions. Income of the society registered under income tax is exempted from income tax.
The following points should normally be kept in mind at the time of making
an application for registration:-
(i) there should be a legally existent entity, which can be registered;
(ii) it should have a written instrument of its creation or written
document evidencing its creation;
(iii) all its objects should be charitable or religious in nature;
(iv) its income and assets should be made applicable towards objects
only, mentioned in the object clauses, and Rules and Regulations;
(v) no part of its income should be distributable or distributed, directly
or indirectly, to its members, directors or founders, related persons
or relatives etc. claiming through them; and
(vi) in case of dissolution, its net assets after meeting all its liabilities,
should not be revertible or reverted to its founder, members,
directors or donors etc., but used for the objects.
Section 12A(b) also requires that if income of a trust etc. in any previous
year exceeds rupees fifty thousand before giving effect to provisions of
section 11 and section 12, then its accounts are required to be audited by
an accountant and his report in Form no. 10B (Annexe-2) has to be filed
along with the return of income.
The following points should normally be kept in mind at the time of making
an application for registration:-
(i) there should be a legally existent entity, which can be registered;
(ii) it should have a written instrument of its creation or written
document evidencing its creation;
(iii) all its objects should be charitable or religious in nature;
(iv) its income and assets should be made applicable towards objects
only, mentioned in the object clauses, and Rules and Regulations;
(v) no part of its income should be distributable or distributed, directly
or indirectly, to its members, directors or founders, related persons
or relatives etc. claiming through them; and
(vi) in case of dissolution, its net assets after meeting all its liabilities,
should not be revertible or reverted to its founder, members,
directors or donors etc., but used for the objects.
Section 12A(b) also requires that if income of a trust etc. in any previous
year exceeds rupees fifty thousand before giving effect to provisions of
section 11 and section 12, then its accounts are required to be audited by
an accountant and his report in Form no. 10B (Annexe-2) has to be filed
along with the return of income.
18 August 2014
Can be the society profitable to founders
19 August 2014
if you want the society profitable to founders you have to pay tax and then only can share the profits.
19 August 2014
Thank you for the information sir ..! In this respect what procedure I should follow and the limit and accounts audit related and is it mandatory to open a bank account .
19 August 2014
It is mandatory to open bank accounts. Audit and filing the return is based your income exceeding the exemption limit.
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