Dear All,
A Religious Temple has the following assets over its life time-
Temple Building (Current Valuation) Rs.50 Lakhs
Jewellery & Ornaments (Current Valuation) Rs. 7 Lakhs
Fixed Deposit Rs.15 Lakhs
Bank & Cash Rs. 3 Lakhs Rs. 80 Lakhs
Yearly Income (on an average) Rs.2,00,000/-
Yearly Expenditure (average) Rs.60,000/- i.e. Surplus (average) Rs.1,40,000 p.a.
(Note : This Income is generated from Cash Accumulation in Cash Donation Box and Voluntary Donation from various people of the religion alongwith Interest on FD & Savings )
In light of the above, these people cannot spend 85 % of their Income during the year hence it didnt form any type of trust and register it and further as such their Income has always been below Taxable Limit, they did not apply for PAN and didnt file a return.
Question
1. Whether it is necessary for them to register as a Religious Trust only and file IT return accordingly or
they can form an AOP and apply for PAN and then file return as an AOP ?
2. Keeping in mind the assets of the Temple, whether all of them can be shown, i.e. whether there would be any complication for the Income Tax angle ?
Correct Advice is very essential in this case. Please guide if there is any other possible remedy or better option
CAclubindia
