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Church has to give income tax or not .

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Ritesh Ashish Roberts

21 Points Posted on 08 November 2020

income tax department has charged church to give income tax , is it legal or inlegal.

Replies (2)

Quick Summary

This discussion clarifies whether churches are legally obligated to pay income tax. It explains that simply being a religious organisation doesn't automatically grant tax exemption. Churches must adhere to specific rules and procedures, often related to sections like IRC 501(c)(3), to qualify for and maintain tax-exempt status. If these conditions aren't met, tax authorities can legally demand payment, and even exemptions may not cover all activities or income.

ayusmita

Tax consultant

3466 Points Posted on 09 November 2020

Legal
they can charge if they don't follow rules
specially as per IRC section 501(c)(3)

JJJ

Need help

436 Points Posted on 03 June 2022

Just being a religion based entity does mot automatically mean it's not required to pay any taxes. If that were the case, every second person will claim to be a Church of This or a Temple of That or an Agiary of the Other.

There are procedures to be followed to attain any exemption and also to continue to be eligible for any dispensation.

So yes, it is most certainly legal for the authorities to ask for taxes to be paid if the entity does not have valid exempt status.

Also remember, even any allowed exemption is not absolute and does not necessarily cover all activities and income of the entity.