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Cooperative society and association of persons

srivani (Article Assistant) (78 Points)

22 November 2016

Hello sir,

Good Evening,

I need a clarification about the difference between Cooperative Society and Association of Persons

If there is any difference, what are the tax implications for each

Please reply me as soon as possible sir

Thanks in advance:)

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2 Replies

J. K. Ratan (Compliance Advisor) (794 Points)
Replied 22 November 2016

A cooperative is an autonomous association of people united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly owned and democratically controlled business.

There is no deference in Cooperative society and association of persons.

Society :- To give the legal form for any work/activity, individuals obtain the local registration from registrar of societies in respective state.

AOP :- Income tax Department as per section 2(31) of income tax act 1961, assessed it's income as association of person