TDS need to be deducted while contributing to education society by its members

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32 Points Posted on 07 January 2020

I am registering a Society in Himachal Pradesh to build and run a school. Do one of its members needs to deduct TDS while contributing to the society a large amount say Rs. 30 lacs to build school building ?

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On 07 January 2020 at 08:47 Report
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This discussion clarifies whether Tax Deducted at Source (TDS) needs to be applied when a member contributes a significant amount, such as Rs. 30 lacs, to a society's corpus for building a school. The consensus is that TDS provisions are generally not applicable to such corpus contributions, especially if the society is registered under the relevant State Trust/Society Act and has obtained a 12A registration with the Income Tax Department. The distinction between 12A (for corpus) and 80G (for donations) registration is highlighted.

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17269 Points Posted on 07 January 2020
Contribution is in terms of society corpus a Trust body. TDS provisions are not applicable.
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On 07 January 2020 at 12:22
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32 Points Posted on 07 January 2020

Thanks Praveen. One more clarification, is above comments applicable even if l just have registered the society and not applied for exemption under 80G. Thanks for your help in advance.

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On 07 January 2020 at 13:03
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C.A FINAL STUDENT AND QUALIFIED C.M.A
563 Points Posted on 07 January 2020

80 G registration is different and 12 A registration is different. It is just enough if you have 12A Registration.  80 G is for 'Donation' and 12A is for 'Corpus'. (Sec 11(1)(d)).

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On 07 January 2020 at 13:24
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17269 Points Posted on 07 January 2020
You have to go for Registration of society under State Trust/society Act as well as registration under income tax department.

You may apply for 80G as it gives 80G deductions to donor. It's at your option.
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On 07 January 2020 at 13:26
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32 Points Posted on 07 January 2020

Thanks Keerthi. This is helpful.

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On 07 January 2020 at 13:28
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32 Points Posted on 07 January 2020

Thanks Pravin. Sorry for sounding foolish but just want to clarify that suppose l just registered a society to build and run a school and not registered it under Income tax department and one of the members of the society wants to contribute a corpus of around Rs. 30 Lacs for school building in that case will he/she have to deduct TDS or not?

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On 07 January 2020 at 14:00

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