Can anyone tell me about Community Welfare Society registered under the Societies Act-What are its Tax Liabilities like taxable limit, slab etc with reference to sections/Case Law????
Amanjot Kaur (CA -Practice) (66 Points)
01 March 2012Can anyone tell me about Community Welfare Society registered under the Societies Act-What are its Tax Liabilities like taxable limit, slab etc with reference to sections/Case Law????
Anumanchipalli Sathikonda
(Tax Consultant)
(1349 Points)
Replied 02 March 2012
Mr.Aman
Any society is treated as an AOP (Association Of Persons) under the Income-tax Act, 1961. AOP is a taxable entity under the Income-tax Act. The rates applicable in the case of an individual are the rates of tax for the society.
If any member of the society is having taxable income in any assessment year for that assessment year the AOP will be taxed at the marginal maximum rate.
Generally Community Welfare Societies do not get registration u/s 12A. Any how try to make an application u/s 12AA and also u/s 80G to the juriisdictional Director of Income-tax (Exemptions)/Commissioner of Income-tax requesting to accord registration. If your socieity has got registration u/s 12AA the income of the society is exempted as per the provisions of section 11 subbject to the other conditions laid down in that section and in section 13 of the Income-tax Act, 1961.
Best Wishes
Sathikonda
CAclubindia
