Itr for educational society

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This query is : Resolved

CA. Naveen Jain (Querist)

04 October 2013 Sir A School is registered under societies Act 1860 and its PAN card is as AOP.
Now its gross receipts during the FY 2012-13 are 90 Lacs. And the said society is not registered under any other section of IT
Pls guide which form wiil be used to file its ITR so as to claim exemption u/s 10(23c) as the society requires to file its ITR for applying Laon from Bank

Nikhil Kaushik

Nikhil Kaushik (Expert)

05 October 2013 Assuming that you are either covered under 10(23C)(iiiad) or 10(23c)(vi), you need to file ITR7. Audit report in form 10BB also needs to be filed online.

Remember there are specific requirements for registration with income tax department under 10(23c). Unless such requirements are not fulfilled, benefits available in this section won't be available to this school.

CA. Naveen Jain

CA. Naveen Jain (Querist)

05 October 2013 Thankyour Nikhil but I think as per section 10(23c)(iiiad) if the gross receipts are less than 1 crore in fy then the income are exempt for the society even if not registered either u/s 10 or 11 or 35
Pls clarify

Aashok Kumar Sharma

Aashok Kumar Sharma

(Expert)

02 August 2024 For an educational society that is registered under the Societies Act 1860 and has gross receipts of ₹90 lakhs during FY 2012-13, the relevant ITR form and tax provisions would be as follows:

### ITR Form to Use

1. **Form ITR-7:**
- **Applicability:** Educational societies registered under the Societies Act and claiming exemptions under Section 10(23C) or Section 11 should file their Income Tax Return using **ITR-7**.
- **Reason:** ITR-7 is designed for entities like trusts, associations of persons (AOPs), and other similar entities claiming exemptions under various sections including Section 10(23C).

### Exemption Under Section 10(23C)

1. **Section 10(23C)(iiiad):**
- **Applicability:** This section provides exemption to educational institutions whose gross receipts do not exceed ₹1 crore in the financial year.
- **Requirement:** For claiming this exemption, the institution must meet the conditions specified in the section, but it does not necessarily require registration under Section 12A or 12AA of the Income Tax Act.

2. **Filing Requirements:**
- Even if the society is not registered under Section 12A or Section 35, it can claim exemption under Section 10(23C)(iiiad) if its gross receipts are less than ₹1 crore.

### Key Points for Filing

1. **Filing ITR-7:**
- When filing ITR-7, the society should enter the relevant details in the "Exempt Income" section and claim the exemption under Section 10(23C)(iiiad).

2. **Supporting Documentation:**
- While applying for loans or other purposes, the society should maintain proper documentation of its gross receipts and other relevant financial statements to substantiate its claim of exemption.

3. **Registration:**
- Although not mandatory for claiming the exemption under Section 10(23C)(iiiad), obtaining registration under Section 12AA can provide additional benefits and ease of compliance in future.

### Summary

For the financial year 2012-13, given that the gross receipts of the educational society are ₹90 lakhs, it can file its Income Tax Return using **ITR-7** and claim exemption under Section 10(23C)(iiiad). The society does not need to be registered under Section 12A or 12AA for this exemption but should ensure proper documentation and compliance for claiming the exemption.

If you need further assistance or have more specific questions, it might be helpful to consult a tax professional or Chartered Accountant who can provide detailed guidance based on the specific circumstances of the society.

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