Question ID : 29578

Tax Treatment for Unregistered Trust / Society

Sir, A Society registered with the sub registrar of Societies but not with Income Tax us 12 A of the Income Tax Act. Kindly advise Query 1. When Audit of the Society is compulsory? Whether its , when receipts of the society exceeds Rs.50000-? If the Audit Report is to be issued , if any, under which Section and Form No? 2. At what Rate of tax , the society will be taxed? Whether as per slab rate applicable for Individual and HUF or at Maximum Marginal rate @ 30? 3. When the Society will be treated as AOP ( Association of Persons )? 4. Whether the Society not having 12 A registration can accept Corpus Fund donation? If yes, any case law is available, please provide.

Answer ID : 65504

1) Audit is compulsory in accordance with bye laws of society (assumed society regd. umder society registration Act 1860) 2) Society will be tax at rate as same as for Individual 3) if Society is registered under section 12 A or us. 10(23C) then they can claim exemption otherwise treated as AOP (Society) but tax rate would be same as per Individual assesee (section 167B) 4) FOr Point no 4 , wait for comments of others members

Answer ID : 65505

Society not registered under 12A will be taxed as AOP. taxation will be as same as individual assessee if members of the society are not having income exceeding the maximum amount chargeable to tax. Otherwise MMR applicable.

Answer ID : 65509

There is no procedure of any Share of Profit of Member in Society (1860) and according to Section 167 B the rate of Tax should be same as on Individual .

Answer ID : 65510

Answer given by mr. sandeep is correct. regarding the point no. 4, Society can accept corpus fund even if it is not registered us 12A.

---