Audit report format of clubs

I am doing the audit of a rotary club registered as AOP,  having 100 plus members .the club receives membership fees and outside donations for carrying out social works.since this year the club could not do much work due to covid pendemic and has Rs 500000 in hand . will it be taken as the income of the AOP or we can claim exemption on the basis of mutuality concern.

 

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Quick Summary
This discussion addresses the audit report format for a Rotary Club registered as an AOP with over 100 members. Key concerns include how to classify membership fees and donations, especially with Rs 500,000 currently held due to the pandemic's impact on activities. The core question revolves around whether this sum is treated as AOP income or if an exemption can be claimed based on the principle of mutuality, particularly for clubs not registered under SEC 12A of the Income Tax Act.

Complaince of SEC 12A OF INCOME TAX ACT .
ROTARY CLUB REGISTRATION COMPLAINCE
the AOP is not registered under sec 12A

could u pls break up 5 lacs is this lying with AOP since py or earned in this year , only then it can be answered

 

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