Tax deductions for Welfare association

Tax deductions for Welfare association

We are a Welfare Association of 50 years who aim and objective is cultivating a sense of camaraderie, encourage organize and promote social cultural and welfare activities among the residents of the colony who incidentally are members of the Association.
We organize a fund raiser by way of a play musical show where we bring out a souvenir where entities book advertisements. the fund thus collected is invested and the interest earned from the corpus is used to carryout the various activities of the association.
Is the basic exemption of Rs 2,50,000 available for income tax calculations on the net profit for the year. We have a Pan card in the Association's name but otherwise not registered.

Asked 7 years ago in Income Tax

It is for the first time that we have crossed the threshold limit of 2,50,000 as we celebrated our 50th year and earned a profit of 4,00,000 through advertisements gathered for the Jubilee show last year. The tax would be payable after deducting all expenses, incurred for putting up the show and the normal expenses for organizing the various events for the members during the year.

Asked 7 years ago

Yes the tax will be payable on the net profit after debiting all the expenses