Income Tax Query.. Please help!!

According to me, it is better such group registers itself as a Trust and continues with its aboce mentioned objectives.

You can wait for other members to comment on the same.

Regards,

Devendra 

Thanx Devendra

Any more answers please!!!

Actually your explaination is right from your own side but its very hard that ITO may belive it.  

If ITO will belive it, He raises his question that you cannot enjoy high interest rate as that in case of senior citizen.

And ITO can finally raise his demand.

From now onwards you should get it registered.

Its Safe.

Wait for more comments & correct me if i went wrong any where.

without proper paperwork such transactions will get nightmere, 

your contribution of 2 lacs wihotu any consideration to anybody ( not relative) would invite troubles of paying  tax on undisclosed gifts from other than relatives, ending up the whole interest dream in tax brackets.

get a legal identity of the comunity then only do it, 

Thanx everybody for your valuable suggestions

I have a doubt regarding this

Can it be registered as AOP/BOI ?? Will following procedure be sufficient:

Step 1: Prepare an agreement of AOP in the fomat attached to prove the existence of this group. (I got it on CCI only)

Step 2: Get a PAN Card in the name of this AOP/BOI

Step3: Submit the Agreement Copy, PAN Card copy, Copy of Resolution authorising the person to invest on behalf of the AOP/BOI for investment in Bank/ Post Office.

I just got some input on this website relating to unincorporated AOP/BOI. https://fiuindia.gov.in/faq-identityclient.htm#1313.

After reading this link I don't think there is need to register our trust with any legal authority and only the aforementioned steps are sufficient to comply!! Please correct me if I have wrongly interpreted.

If anybody still feels that an official registration is mandatory please suggest me the procedure to do so!!

Thank you very much!!

AOP/BOI itself is an legal identity, registered or unregistered, but it has to mention the names and identity of members with their clear % ratio, and having a pan in AOP/BOI will make it distinguished from the individual transactions, 

@ Mr. US Sharma: Thank you but could you please elaborate your answer! I didn't understand the phrase "and having a pan in AOP/BOI will make it distinguished from the individual transactions". My question is... What is the individual transactions you are talking about?? If that is the case what is the problem/consequence of it being distinguished from individual transactions? Do you mean it is advantage or disadvantage??

and regarding "mentioning the names and identity of members with their clear % ratio" do you mean it should be mentioned on the agreement?

https://www.mukeshraj.com/ngo.html

as your deemed trust has "deposited" the amount in name of senior citizens, it is not a trust activity, formation of a trust will empower trust to make deposits in its own name, and not to use any individual for deposits.

at the time of formation the inditial formation of trust bodies is necessary with their role and if possible then capital structure too.

trust has bigger goals to achive for human welfare, incometax is just one halt for them, so formation of trust should not be done for incometax purpose only.

Thank you Mr. US Sharma for your valuable suggestions. It was of great help and I will share the same with other members of our group too.