Taxation of Society regd under Societies Regn. Act 1860

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Sashwat Dash (Querist)
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21 September 2009 How the income of a Society (registered under Societies Registration Act 1860 but was rejected to be registered as a trust u/s 12AA of IT Act) would be taxed and in which circle its return to be filed. Ans also what about tax audit if its earning is > 10 lacs ?

CA. B.SRINIVASULU

CA. B.SRINIVASULU (Expert)
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21 September 2009 If registration of trust is rejected then it becomes AOP under the income tax act. Depending on the address you have to choose the ito, ward, circle.

Sashwat Dash

Sashwat Dash (Querist)
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22 September 2009 Thank you, but what about the following since for Taxation purposes, AOP does not include a regd. Society (for members share basis)and hence it would be taxed at slab applicable to Individuals:

1.Will it be filed in ITR-7 or 5
2.Will it mean tax is to be paid on Total income > 1.50 lacs, since exemption u/s 11 & 12 not available?
3.If the earnings are > 10 lacs, whether report would be in Form 10B or Tax Audit required in Form 3CD (if at all taken under Professional category)?
4.Accounts would include 'Income & Expenditure A/c' OR 'P&L A/c'?

Manoj Sachdeva

Manoj Sachdeva (Expert)
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26 January 2011 It will be filed in ITR 7.Tax will be paid on income exceeding the basic exemption i.e 160000.
If it is a educational institution then exemption u/s 10 upto the receipts of Rs 1 Crore is available
If the Receipts are more than 40 lacs then audit report u/s 44AB is to be attached since it is outside the purview of Section 11.
This society will be taxed as a normal business entity.