Registration of a society in income tax

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Gautam Kumar (Querist)

14 June 2014 If an entity is formed as a Society governed by Societies Registration Act 1860, then for application of PAN under which head it should apply to Income tax department so that it can avail the benefit of being an NGO? I want to clear that please dont misunderstand it as a charitable trust!

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CS,CA F,Numrologi TusharSampat

CS,CA F,Numrologi TusharSampat (Expert)

14 June 2014 as aop is more suitable..................

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Gautam Kumar

Gautam Kumar (Querist)

14 June 2014 if its been registered as AOP then would it be able to avail the tax benefits of a society(NPO)? what would be its tax implications as AOP. Please explain in detail.....

Nikhil Kaushik

Nikhil Kaushik (Expert)

14 June 2014 yes it will be able to claim the tax benefits of a society. charitable or not, all the society's are registered as AOP only.

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Gautam Kumar

Gautam Kumar (Querist)

16 June 2014 Income and tax calculation of AOP is based on income of its members (as far as I know)(pardon me if I am wrong) then would the same will be implemented on society also? If yes, then how will it get the benefit of society's tax exemptions and if no, then what are the ways to calculate income of a society..!

Nikhil Kaushik

Nikhil Kaushik (Expert)

16 June 2014 you will be registered as an AOP but that doesnt mean your tax will also be as of AOP. even charitable society's are registered as AOP but they are governed by Section 11 and 12.

actually if you look at definition of persons in income tax act (section 2(31), society is not recognised as a separate tax entity.

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