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Amount collected for cricket tournament and other programs

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sathya kumar s

Accountant

172 Points Posted on 06 August 2024

Greetings to all,

My query is we have collected some funds from public as well as from old students towards arranging certain events like cricket tournament for alumni members. Now some funds are left out and we are planning to raise funds and conduct different activities each year. For this purpose we need a bank account. Bank officials have informed us to furnish PAN Card to open a Bank Account.

Now do we have to apply PAN for an AOP or Trust ? Also can i know what would be the tax implications ?

Replies (7)

Quick Summary

This discussion explores the process of opening a bank account for funds collected for an alumni cricket tournament and other future activities. The main query revolves around whether to apply for a PAN card as an Association of Persons (AOP) or a Trust, and the associated tax implications. Participants discuss the ease of forming an AOP versus a Trust, tax rates for AOPs, and the possibility of claiming income tax exemption through the Doctrine of Mutuality, with advice suggesting it's generally not allowed unless registered as a charitable trust or co-operative society.

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121528 Points Posted on 06 August 2024

Forming AOP is easier as compared to trust with registration.

Tax over AOP will be at marginal rate of 30%.

sathya kumar s

Accountant

172 Points Posted on 06 August 2024

Sir, we have formed this for common benifit of our old alumni members. Are we required to pay taxes for such contributions received ?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121528 Points Posted on 06 August 2024

Yes ....

sathya kumar s

Accountant

172 Points Posted on 06 August 2024

Can we apply Doctrine of Mutuality concept and claim Income Tax exemption ?

Dhirajlal Rambhia

SEO Sai Gr. Hosp.

121528 Points Posted on 06 August 2024

Generally it is not allowed unless Trust is incorporated and registered for charitable activities, or any association under co-operative societies act.