Taxation of charitable society

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This query is : Resolved

seema singla (Querist)

07 October 2013 A society was registered in 1997 in a University for the purpose of promoting the cause of science in Punjab . Since then it gets a compiled balance sheet and income & expenditure account from a CA. It had never filed ITR. Sometimes its income over expenditure exceeds Rs.2 Lacs.
Now it is receiving a donation from abroad for the free education of children. So, they applied for a PAN and received the same.
Now, what to do????
They should apply in form 10A now or when should they apply for???? Should the society had to pay taxes in the past? Should they had to get the audit report in form 10B.
Plz reply as it is very urgent.....

Nikhil Kaushik

Nikhil Kaushik (Expert)

08 October 2013 assuming that the society is not covered under 10(23C), please apply for 12AA registration. thereafter the audit report is to be prepared in form 10BB, ITR 7 is to be filed annually.

seema singla

seema singla (Querist)

08 October 2013 thanks for the reply.
needs some more information.
Plz tell whether there is going to be any problem as the society 's income exceeded Rs. 2Lacs in past two years.

seema singla

seema singla (Querist)

08 October 2013 thanks for the reply. needs some more information. Plz tell whether there is going to be any problem as the society 's income exceeded Rs. 2Lacs in past two years.

PARDEEP KUMAR AGGARWAL

PARDEEP KUMAR AGGARWAL (Expert)

08 October 2013 There is no exemption available to any Society or AOP and hence even where this society have earned a single Rupee in the financial year, it need to file its tax return and have to deposit the tax liability accordingly.

Now in your case, you have got PAN Number only this FY, you need to file ITR for this FY only, for earlier periods you cannot file any ITR. Rest all depends upon Assessing Officer where usually they don't raise any query or notice for the years for which neither you have PAN nor filed any ITR.

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