Temple in a residential colony

Dear Sirs,

Kindly clarify the following. We have a temple society registered within our residential colony of about 1000 families. Every year we celebrate all major festivals and the elected committee collects donations and organise these festivals besides day-to-day functioning of temple, poojari and other expenses. Last 4 years the committee had been spending lot of money (approx. Rs.25+ lacs) per year and majority of the payments to vendors and contractors is made as cash. each transaction may exceed Rs.10,000. The committee does not file ITR. Could you please elaborate tax implications u/s 40 and having a regular  annual income not less than Rs.10-12 lacs from hundi, donations etc. besides the fesitve collections of Rs.10-15 lacs per year. What are the tax implications

Replies (4)
Quick Summary
This discussion addresses the tax implications for a registered temple society operating within a residential colony. It questions the tax treatment of significant annual income from donations and festive collections, particularly when a majority of vendor payments are made in cash exceeding Rs. 10,000 per transaction. The core concern revolves around mandatory Income Tax Return (ITR) filing requirements for the society, especially if it has not opted for 12A or 80G registration.

Itr filing here is mandatory not always.

Could not follow the reply sir, is it mandatory and when is not always as the society did not opt for form 12A or 80G etc.

You could not follow that's better.
If you are registered 12A and 80G it is mandatory to audit. if not registered then better register and get the accounts audited to avoid future implications

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