Taxation of mandir under societies registration act 1860
This query is : Resolved
18 January 2018
Sir, there is a Mandir Managing Committee registered under Societies Registration Act 1860 but not registered under Sec.12A of Income Tax Act. The receipts of Mandir are Rs 210000/- and net income is Rs 103010/-.Now I want to file income tax return of the mandir as an AOP. The fourth character of Pan Card is 'A' The two or three member's income exceeds basic exemption limit. The issue is whether Basic Tax Exemption Limit i.e. Rs 250000/- as applicable to individual is applied to that Mandir or whether there will be MMR applicable?
Is there any Audit required?
Is it AOP or Cooperative Society?
Is there any Audit required?
Is it AOP or Cooperative Society?
18 January 2018
It's an AOP and if you file the return MMR will be applicable.
Message likes :
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21 January 2018
Respected Sir, Thanks for ur Reply but I read in an article that if there is a public trust i.e. a Mandir then there will be tax rates applicable to individual and if there are Private Trust let us a A business unit make AOP then there will be MMR applicable otherwise not.Am I right or wrong Sir?
26 July 2025
Great question! Let me clarify the taxation and audit implications for a **Mandir (temple) managed by a committee registered under the Societies Registration Act, but not registered under Section 12A of the Income Tax Act**.
---
### 1. **Is the Mandir an AOP or a Cooperative Society?**
* Since it is registered under the **Societies Registration Act 1860** and there is no specific registration under the Cooperative Societies Act, it **is not a Cooperative Society**.
* It will be treated as an **AOP (Association of Persons)** for income tax purposes.
---
### 2. **Applicability of Tax Rates and Basic Exemption Limit**
* **AOP does NOT get the benefit of the individual basic exemption limit of Rs. 2,50,000**.
* Instead, **AOP is taxed at prescribed rates under the Income Tax Act**, which can be higher than individual slabs.
* For example, income slabs for AOP in FY 2017-18 (AY 2018-19) were:
* Up to Rs 2,50,000 - NIL (only if income comes from agricultural or specified exempted sources)
* Otherwise, **tax rates on AOP start from 30% without slab benefits**, sometimes with surcharge and cess.
* So even if members individually have basic exemption limits, the **Mandir’s income as AOP is taxed separately** at AOP rates.
---
### 3. **Minimum Alternate Tax (MAT) / Minimum Marginal Rate (MMR)**
* If the Mandir is treated as an AOP, **the normal income tax rates for AOP apply, and MAT provisions may apply if turnover or profits cross threshold**.
* MMR usually means **Marginal Relief** which applies at times — the term may be a confusion, but the key is **MAT applicability**.
* For AOPs and unregistered trusts, MAT may apply if income exceeds Rs. 1 crore and profits exceed Rs 1 crore.
---
### 4. **Audit Requirement**
* Audit under **Section 44AB** is required if:
* The Mandir’s gross receipts exceed Rs. 1 crore (applicable for business).
* Or income is taxable and conditions for audit are met.
* Since your Mandir’s receipts are Rs 2,10,000 (much less than 1 crore), **audit is generally not required**.
* However, if income is from business or speculative activities, audit conditions might differ.
---
### 5. **Filing of Income Tax Return**
* File the return as **AOP using ITR-5 form**.
* Disclose income and pay tax as per AOP tax rates.
* Since not registered under 12A, **no exemption is available**, and income is fully taxable.
---
### 6. **Regarding Public Trust vs Private Trust Rates**
* **Public charitable trusts (registered under 12A) enjoy exemptions and are taxed differently**.
* Private trusts or unregistered trusts / societies registered under Societies Act but not under 12A are treated as **AOP for taxation**, with normal AOP tax rates.
* Hence, your Mandir being an unregistered AOP cannot claim individual rates.
---
### **Summary:**
| Aspect | Applicability for Mandir (Society registered but not 12A) |
| --------------------- | --------------------------------------------------------- |
| Entity Type | AOP (Association of Persons) |
| Tax Rate | Taxed at AOP rates (usually flat 30% + surcharge + cess) |
| Basic Exemption Limit | Not applicable (individual exemption NOT available) |
| Audit Requirement | Not required if receipts < Rs. 1 crore |
| ITR Form | ITR-5 |
| Tax Exemption | Not available without 12A registration |
---
If you want, I can help you prepare the ITR or explain the steps to apply for 12A registration for exemption. Would you like that?
---
### 1. **Is the Mandir an AOP or a Cooperative Society?**
* Since it is registered under the **Societies Registration Act 1860** and there is no specific registration under the Cooperative Societies Act, it **is not a Cooperative Society**.
* It will be treated as an **AOP (Association of Persons)** for income tax purposes.
---
### 2. **Applicability of Tax Rates and Basic Exemption Limit**
* **AOP does NOT get the benefit of the individual basic exemption limit of Rs. 2,50,000**.
* Instead, **AOP is taxed at prescribed rates under the Income Tax Act**, which can be higher than individual slabs.
* For example, income slabs for AOP in FY 2017-18 (AY 2018-19) were:
* Up to Rs 2,50,000 - NIL (only if income comes from agricultural or specified exempted sources)
* Otherwise, **tax rates on AOP start from 30% without slab benefits**, sometimes with surcharge and cess.
* So even if members individually have basic exemption limits, the **Mandir’s income as AOP is taxed separately** at AOP rates.
---
### 3. **Minimum Alternate Tax (MAT) / Minimum Marginal Rate (MMR)**
* If the Mandir is treated as an AOP, **the normal income tax rates for AOP apply, and MAT provisions may apply if turnover or profits cross threshold**.
* MMR usually means **Marginal Relief** which applies at times — the term may be a confusion, but the key is **MAT applicability**.
* For AOPs and unregistered trusts, MAT may apply if income exceeds Rs. 1 crore and profits exceed Rs 1 crore.
---
### 4. **Audit Requirement**
* Audit under **Section 44AB** is required if:
* The Mandir’s gross receipts exceed Rs. 1 crore (applicable for business).
* Or income is taxable and conditions for audit are met.
* Since your Mandir’s receipts are Rs 2,10,000 (much less than 1 crore), **audit is generally not required**.
* However, if income is from business or speculative activities, audit conditions might differ.
---
### 5. **Filing of Income Tax Return**
* File the return as **AOP using ITR-5 form**.
* Disclose income and pay tax as per AOP tax rates.
* Since not registered under 12A, **no exemption is available**, and income is fully taxable.
---
### 6. **Regarding Public Trust vs Private Trust Rates**
* **Public charitable trusts (registered under 12A) enjoy exemptions and are taxed differently**.
* Private trusts or unregistered trusts / societies registered under Societies Act but not under 12A are treated as **AOP for taxation**, with normal AOP tax rates.
* Hence, your Mandir being an unregistered AOP cannot claim individual rates.
---
### **Summary:**
| Aspect | Applicability for Mandir (Society registered but not 12A) |
| --------------------- | --------------------------------------------------------- |
| Entity Type | AOP (Association of Persons) |
| Tax Rate | Taxed at AOP rates (usually flat 30% + surcharge + cess) |
| Basic Exemption Limit | Not applicable (individual exemption NOT available) |
| Audit Requirement | Not required if receipts < Rs. 1 crore |
| ITR Form | ITR-5 |
| Tax Exemption | Not available without 12A registration |
---
If you want, I can help you prepare the ITR or explain the steps to apply for 12A registration for exemption. Would you like that?
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