Txation of society reg under society reg act 1860
This query is : Resolved
03 January 2014
a society is registered under society reg act 1860. whether its income is exempt u/s 167B of i.t act. if not whether it can claim basic exemption limit of individual. i.e. rs 200000/-
03 January 2014
Society id governed by the provisions of Section 80P and the deduction are specified in that section. Kindly go through the same.
04 January 2014
it is not a co operative society. 8op covers only coperative society.
04 January 2014
Yes refer sec 110 and Part3 of first schedule to Finance act 2012 or 2013 wherein the tax rates have been given slab wise and it is also applicable for co-op society as it is applicable for individual.
07 January 2014
it is only a society slab rates are for co-operative society
07 January 2014
tel me under income tax ur society is registered as which type of " person" ? like Artificial Jurisidical person or wat/
13 January 2014
it is a society registered under soc. reg. act 1860. in income tax it is registered as AOP. shares of member are indeterminant, from this point of view max slab rate is applicable but as per sec 167B society registered under soc. reg. act 1860 is not covered there.
pls help
pls help
02 August 2025
Here’s a clear summary regarding the taxation of a society registered under the Societies Registration Act, 1860:
---
### 1. **Is the society’s income exempt under Section 167B of Income Tax Act?**
* **No**, Section 167B relates to exemption for certain funds and trusts, but **does not cover societies registered under Societies Registration Act, 1860**.
* So, the society’s income **is not automatically exempt** under Section 167B.
---
### 2. **What is the tax status of such a society under Income Tax?**
* For Income Tax purposes, a society registered under the Societies Registration Act, 1860 is treated as an **Association of Persons (AOP)** or **Artificial Juridical Person**.
* An AOP is **taxed as a separate entity**, not like an individual.
* Since the shares of members are indeterminate, **the maximum slab rate applicable to AOPs will apply**, which is usually higher than individual slab rates.
---
### 3. **Can the society claim the basic exemption limit of an individual (₹2,50,000 as per current law)?**
* **No**, the basic exemption limit available to individuals **does not apply** to societies/AOPs.
* Instead, the society will be taxed as per the slab rates applicable to AOPs (which usually start from a higher rate, e.g., 30%).
---
### 4. **Is Section 80P applicable?**
* **No**, Section 80P applies only to **Co-operative Societies**, and not to general societies registered under the Societies Registration Act.
* So, the society **cannot claim deduction under Section 80P**.
---
### 5. **Summary:**
| Aspect | Applicability/Remarks |
| -------------------------------- | ----------------------------------------------- |
| Income exempt under Section 167B | No |
| Tax status under Income Tax | Taxed as AOP (Association of Persons) |
| Basic exemption limit | Not applicable; AOP taxed at maximum slab rates |
| Deduction under Section 80P | Not applicable (only for co-op societies) |
---
### Practical advice:
* The society should file Income Tax Returns as an AOP.
* Income will be taxed as per slab rates applicable to AOP.
* Maintain proper books and accounts as per Income Tax requirements.
* If society engages in charitable activities, consider registering under Section 12AA or 12AB for exemption under charitable trust provisions.
---
If you want, I can help you draft a detailed note or advise on how the society should comply with tax filings!
---
### 1. **Is the society’s income exempt under Section 167B of Income Tax Act?**
* **No**, Section 167B relates to exemption for certain funds and trusts, but **does not cover societies registered under Societies Registration Act, 1860**.
* So, the society’s income **is not automatically exempt** under Section 167B.
---
### 2. **What is the tax status of such a society under Income Tax?**
* For Income Tax purposes, a society registered under the Societies Registration Act, 1860 is treated as an **Association of Persons (AOP)** or **Artificial Juridical Person**.
* An AOP is **taxed as a separate entity**, not like an individual.
* Since the shares of members are indeterminate, **the maximum slab rate applicable to AOPs will apply**, which is usually higher than individual slab rates.
---
### 3. **Can the society claim the basic exemption limit of an individual (₹2,50,000 as per current law)?**
* **No**, the basic exemption limit available to individuals **does not apply** to societies/AOPs.
* Instead, the society will be taxed as per the slab rates applicable to AOPs (which usually start from a higher rate, e.g., 30%).
---
### 4. **Is Section 80P applicable?**
* **No**, Section 80P applies only to **Co-operative Societies**, and not to general societies registered under the Societies Registration Act.
* So, the society **cannot claim deduction under Section 80P**.
---
### 5. **Summary:**
| Aspect | Applicability/Remarks |
| -------------------------------- | ----------------------------------------------- |
| Income exempt under Section 167B | No |
| Tax status under Income Tax | Taxed as AOP (Association of Persons) |
| Basic exemption limit | Not applicable; AOP taxed at maximum slab rates |
| Deduction under Section 80P | Not applicable (only for co-op societies) |
---
### Practical advice:
* The society should file Income Tax Returns as an AOP.
* Income will be taxed as per slab rates applicable to AOP.
* Maintain proper books and accounts as per Income Tax requirements.
* If society engages in charitable activities, consider registering under Section 12AA or 12AB for exemption under charitable trust provisions.
---
If you want, I can help you draft a detailed note or advise on how the society should comply with tax filings!
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