Does pensioners welfare association qualify for tax exemption
We are pensioners welfare association situated at Hyderabad, Telengana and registered as a society. We generate interest income of about 90000 from fixed deposit and another 50000 from joining fees (once in life time subscription). we are a group of about 450 persons and the income is spent in holding various welfare measures of the members including 3-4 GBMs, Monthly executive commitee meetings and for giving awards to meritorious students etc. Is there any minimum income exemption for our society foe tax or what is the rate of tax payable on the income.
Dr. Ramachandra Rao
Asked 2 years ago in Income Tax from Hyderabad, Telangana
A Cooperative Society is a taxable entity under the Income Tax Act, 1961.
Even though, for taxation purposes, the status of a cooperative society is to be taken as an Association of Persons, the section 67A and section 86 of the Act have been excluded from application to the members of society.
A Cooperative society is chargeable to tax as per rates prescribed under paragraph B of Part1 of the first schedule to the annual Finance Act.
The Cooperative Societies are entitled to several concessions, in the computation of their taxable income. Besides, they also enjoy the benefit of concessional rate of tax on their chargeable income under the annual Finance Act.
Talk to Shyam Sunder Modani
5.0 on 5.0
The society is association of persons under income tax act and is entitled to exemption of income of Rs 2,50,000
and if you are able to establish that you are a mutual association, then there is no income tax on mutual income.
Talk to Vijay N. Kale
4.9 on 5.0