Society registered under haryana registration and regulation of societies act 2012 comp
This query is : Resolved
03 August 2023
if society is registered under section 9(1) of haryana registration and regulation of societies act 2012
society members collect money(chanda) from own villagers for BHANDARAS and DANGAL(wrestling) once in a year and collection approximately Rs 4 lac and expenses are same amount
please elaborate
is ITR filing compulsory?
audit compulsory?
gst registration?
regards
society members collect money(chanda) from own villagers for BHANDARAS and DANGAL(wrestling) once in a year and collection approximately Rs 4 lac and expenses are same amount
please elaborate
is ITR filing compulsory?
audit compulsory?
gst registration?
regards
04 August 2023
GST registration not required.
Audit compulsory.
ITR filling required.
Audit compulsory.
ITR filling required.
05 August 2023
RIGHT SIR!
But society members collecting money(chanda) from villagers for BHANDARA AND DANGAL(WRESTLING) which is organised once in a year. Expenses and collections remain same. And no other income of society.
please
any liability of Income tax on collection and audit? if yes
please advise better some registration where no such liability
regards
But society members collecting money(chanda) from villagers for BHANDARA AND DANGAL(WRESTLING) which is organised once in a year. Expenses and collections remain same. And no other income of society.
please
any liability of Income tax on collection and audit? if yes
please advise better some registration where no such liability
regards
07 August 2023
RIGHT SIR!
But society members collecting money(chanda) from villagers for BHANDARA AND DANGAL(WRESTLING) which is organised once in a year. Expenses and collections remain same. And no other income of society. please any liability of Income tax on collection and audit? if yes please advise some better registration where no such liability
regards
But society members collecting money(chanda) from villagers for BHANDARA AND DANGAL(WRESTLING) which is organised once in a year. Expenses and collections remain same. And no other income of society. please any liability of Income tax on collection and audit? if yes please advise some better registration where no such liability
regards
07 August 2023
Slab rate of income tax applicable on profit earned on such sports events.
26 August 2023
Sir
society is doing only couple of functions in a year which are NOT PROFITABLE (basically its collection of money(CHANDA OR DAAN) from all villagers)
if you have better idea please guide us for NEW REGISTRATION in HARYANA (where as such no liability)
regards
society is doing only couple of functions in a year which are NOT PROFITABLE (basically its collection of money(CHANDA OR DAAN) from all villagers)
if you have better idea please guide us for NEW REGISTRATION in HARYANA (where as such no liability)
regards
26 August 2023
if required replace sorts word and keep only BHANDARA and other religious activity
25 July 2025
Here's a detailed explanation addressing your queries about the society registered under the **Haryana Registration and Regulation of Societies Act, 2012**, particularly related to collection and expenditure for **Bhandaras and Dangal (wrestling) events**:
---
### 1. **Income Tax Liability**
* Since the society **collects money (chanda or daan) from villagers** and spends approximately the **same amount** on organizing Bhandaras and Dangal, effectively there is **no profit or surplus**.
* Income tax liability arises only on **net taxable income** (profit/surplus) earned by the society.
* If **income = expenditure**, then **no taxable income arises**, and hence **no income tax payable**.
* However, the society must still **file Income Tax Returns (ITR)** to report the transactions and claim **nil income**.
---
### 2. **Audit Requirement**
* Audit is generally **mandatory if income or receipts exceed ₹1 crore** as per Income Tax rules for societies.
* In your case, collection is around ₹4 lakh, which is well below the threshold.
* Therefore, **audit may not be compulsory under Income Tax Act**.
* However, **Haryana Societies Act or Rules may require audit irrespective of income**, so please check the local rules under Haryana Registration and Regulation of Societies Act, 2012.
* Also, if the society receives any **grants or donations with audit conditions**, audit will be necessary.
---
### 3. **GST Registration**
* GST is applicable only if the society is **engaged in supply of goods/services and crosses the threshold of ₹20 lakh (₹10 lakh for special category states) turnover**.
* Collection of **chanda/daan for religious or charitable events** is **not a supply of taxable service**.
* Therefore, **GST registration is NOT required** for such collections.
---
### 4. **Better Registration or Structure to Avoid Tax/Audit Liabilities**
* If the society only carries out **religious and charitable activities** with no profit motive, it may consider:
* Registering under **Section 12A and 80G of Income Tax Act** to get exemption and donors get tax benefits.
* Registering as a **Charitable Trust or Section 8 Company** (non-profit company under Companies Act) for better legal clarity and tax exemption.
* With proper registration as a **Charitable Institution**, the society will have:
* **No income tax on donation/charitable receipts**
* **Exemption from audit if receipts are below threshold**
* **Avoid mentioning "sports events"** if the event is religious or cultural in nature to prevent confusion with taxable activities.
---
### Summary Table:
| Parameter | Status/Requirement |
| ------------------------------ | ------------------------------------------------------------------------ |
| Income Tax on Collections | Only if surplus/profit arises; otherwise no tax |
| Income Tax Return (ITR) Filing | Filing is required even if no income |
| Audit | Usually not mandatory under ₹1 crore income; check local Act |
| GST Registration | Not required for chanda/daan collections |
| Better Registration Option | Register under Section 12A/80G or as Section 8 Company for tax exemption |
---
### Suggested Next Steps:
1. **File ITR with Nil income** (no profit).
2. Check Haryana Societies Act rules for audit threshold.
3. Consider registering as a **Charitable Trust** or **Section 8 Company** with income tax exemption.
4. Keep transparent records of collection and expenses.
5. Avoid calling the event “sports” if it is religious or cultural, to avoid confusion with taxable services.
---
If you want, I can help draft a simple income and expense statement or assist with filing formats or registration advice. Would you like that?
---
### 1. **Income Tax Liability**
* Since the society **collects money (chanda or daan) from villagers** and spends approximately the **same amount** on organizing Bhandaras and Dangal, effectively there is **no profit or surplus**.
* Income tax liability arises only on **net taxable income** (profit/surplus) earned by the society.
* If **income = expenditure**, then **no taxable income arises**, and hence **no income tax payable**.
* However, the society must still **file Income Tax Returns (ITR)** to report the transactions and claim **nil income**.
---
### 2. **Audit Requirement**
* Audit is generally **mandatory if income or receipts exceed ₹1 crore** as per Income Tax rules for societies.
* In your case, collection is around ₹4 lakh, which is well below the threshold.
* Therefore, **audit may not be compulsory under Income Tax Act**.
* However, **Haryana Societies Act or Rules may require audit irrespective of income**, so please check the local rules under Haryana Registration and Regulation of Societies Act, 2012.
* Also, if the society receives any **grants or donations with audit conditions**, audit will be necessary.
---
### 3. **GST Registration**
* GST is applicable only if the society is **engaged in supply of goods/services and crosses the threshold of ₹20 lakh (₹10 lakh for special category states) turnover**.
* Collection of **chanda/daan for religious or charitable events** is **not a supply of taxable service**.
* Therefore, **GST registration is NOT required** for such collections.
---
### 4. **Better Registration or Structure to Avoid Tax/Audit Liabilities**
* If the society only carries out **religious and charitable activities** with no profit motive, it may consider:
* Registering under **Section 12A and 80G of Income Tax Act** to get exemption and donors get tax benefits.
* Registering as a **Charitable Trust or Section 8 Company** (non-profit company under Companies Act) for better legal clarity and tax exemption.
* With proper registration as a **Charitable Institution**, the society will have:
* **No income tax on donation/charitable receipts**
* **Exemption from audit if receipts are below threshold**
* **Avoid mentioning "sports events"** if the event is religious or cultural in nature to prevent confusion with taxable activities.
---
### Summary Table:
| Parameter | Status/Requirement |
| ------------------------------ | ------------------------------------------------------------------------ |
| Income Tax on Collections | Only if surplus/profit arises; otherwise no tax |
| Income Tax Return (ITR) Filing | Filing is required even if no income |
| Audit | Usually not mandatory under ₹1 crore income; check local Act |
| GST Registration | Not required for chanda/daan collections |
| Better Registration Option | Register under Section 12A/80G or as Section 8 Company for tax exemption |
---
### Suggested Next Steps:
1. **File ITR with Nil income** (no profit).
2. Check Haryana Societies Act rules for audit threshold.
3. Consider registering as a **Charitable Trust** or **Section 8 Company** with income tax exemption.
4. Keep transparent records of collection and expenses.
5. Avoid calling the event “sports” if it is religious or cultural, to avoid confusion with taxable services.
---
If you want, I can help draft a simple income and expense statement or assist with filing formats or registration advice. Would you like that?
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